Legal Question in Tax Law in India

Dear Sir,

Would like to thanks if you reply me and help me out from service tax story. I have booked a flat last year july, At that time my builder won't ask for service tax, now he has asked for service tax about 3.09% of that agreement value. I am not aware of that I am googled and found so many things and get puzzled. From one website I got you email and like to ask the same. My confusion as follows:

Is it applicable for flat value greater than Rs.25,00,000?

Is it possible to pay it directly to govt?

Is it calculated on agreement value or by govt value?

How do I confirm that my money is not go in vain, means the developer paid the service tax?


Asked on 5/18/13, 2:31 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

18.05.2013

Dear Sir / Madam,

Service tax is made applicable on all flat transactions irrespective of value.

Since the Agreement for Sale is made by you with the builder, you will have to pay the Service Tax to the builder and it remains his liability to pay it to the Government.

Agreement value or Govt. rateable value whichever is higher.

Obtain a receipt of payment of Service Tax from the builder.

Regards,

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Answered on 5/18/13, 3:43 am
Jayesh Desai Jayesh Desai

If as per agreement you are liable to reimburse to the builder, then only you have to pay him.

Law prescribes liability of the builder to collect the same from the buyer and pay to the government.

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Answered on 5/20/13, 1:53 am


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