Need help with service tax

Avoid paying anything in cash or bearer's cheque. DD or crossed cheque is always safer. Advice without looking at your documents is not possible. Even so, I dont like this situation because if the builder has a clean purpose then why ask for cash? Advocate Pooja Hegde R.

Those who purchased flat/unit in the apartment in the year 2010 and registered after 1.7.2010 will have to pay service tax @ 2.57% since the rate has been increased to 12.36% with effect from 1.4.2012 those who have registered their flat/unit after 1.4.2012 will have to pay 3.09% of the agreement value.

You can look into your documents and calculate on the basis of what is stated by Ramchary. But do not pay in cash or by bearer's cheque. Crossed cheque or DD will keep a track of the payment.Then u wont get harassed into paying again. All the best.

Hi Sunil,

Based on the background of your case, i understand that your query is most specific only to the applicability of Service Tax in the instant transaction.

Considering the provisions of Service Tax law, Service Tax would be applicable on the said transaction to your service provider. 

 

With respect to your builder's delay in charging Service Tax in his initial bill, I would like to point out that in the case of Max New York Life Insurance Co Ltd Vs Insurance Ombudsman and Others reported in [2013] 57 VST 514 (Ker), the Hon’ble HC has held that a service provider who does not disclose the prevailing statutory duties and levies at the time of transaction is not entitled to claim such taxes and levies from the consumer at a later stage during the course of continuing service.

Hence, you may deny to pay the Service Tax on the ground that he has not charged the service tax on the initial bill.