Service tax for buying property

Hi, I have purchased a flat two years back and paid service tax as per the applicable rates at that time. I recently had discussion with the builder to allow me to shift to other flat. While builder allowed me to shift to other flat in same building, he is asking me to pay differential service tax amount on the amount paid in 2013. Can someone help me with the nitty gritty of service tax for buying property? Thanking in anticipation. more  

View all 8 comments Below 8 comments
Yes , you have to pay service tax as mentioned by other friend . Your doubt is whether you have to pay any service tax for the changing of new flat. Now the question is what is the cost difference between those two flats. If it is more naturally you have to pay to the builder ,in tern he will adjust the service tax earlier paid from his account. if less he has to return the difference. Hope I may be correct. more  
If you are not paying any amount now for shifting the flat, no monetary transaction is taking place, you have already paid the service tax for the previous flat, now you are only changing it without involvement of any money, since there is no transaction of money ,in my opinion no extra service tax is now payable. you are taking the possession on retrospective effect. It may be said out of context that India has accepted against double taxation by enacting double taxation avoidance treaty and where as there is a provision as Article 14 a fundamental right which envisages equality before law, then how can be a citizen be taxed double. more  
Well Rama, It does not matter whether we are aware or not, but service tax is being levied in construction work provided by Builder. It is not 14% but it is 4.2% (30% of 14%) which is substantial amount considering the real state cost in our country. Government will not spare anyone on whatever any individual do. :) more  
I was not aware that buying a flat attracts service tax. There would be registration fee proportionate to the value of property purchase declared. So, why should there be service tax for buying property? If the builder is providing maintenance service, then it is understandable if service tax is levied. Is there any exemption of income tax on the amount of purchase?If not, the purchase value attracts: 1. Income tax which also has a service tax and education cess component, 2. Registration fee, 3. Property tax, 4. Service tax???? How many other types of taxes will be imposed? more  
I paid X amount with 3.71% ST in 2013 and now I discussed with builder to move to other bigger flat. Builder is saying that he will cancel the existing booking and do new agreement for the new flat. Since new flat's agreement is as of today, he is asking to pay differential amount of ST on amount X as well. It is additional 0.49% to male it 4.2%. While my arguement is that I am not paying you any amount now and whatever amount I paid earlier, you must have already paid to government. When there is no payment, why should I pay ST differential on earlier paid amount. Is ST charged on date of agreement or date of payment? more  
Post a Comment

Related Posts

    • Refund rule against downgrading to 3ed A.C from 2nd A. C.

      For travel on 2th April 2022 from Thane to Bydur ( Mookambika Road), on konkan Railway.the ticket booked on line through IRCTC. For difference fare, ZTTE issued a certificate. PNR no.8449078066.

      By PUTHUCODE ANANTHARAMAN
      /
    • MB loan customer care number ❾❶⓿❷❶❷❹❺❸❽

      MB loan customer care number ❾❶⓿❷❶❷❹❺❸❽ MB loan customer care number ❾❶⓿❷❶❷❹❺❸❽ MB loan customer care number ❾❶⓿❷❶❷❹❺❸❽

      By Bookmy Kumar
      /
    • OB cash loan customer care number 9102124538

      OB cash loan customer care number 9102124538 🇮🇳 OB cash loan customer care number 9102124538 🇮🇳

      By Raju Kumar
      /
    • ancestral property rights

      Dear Members We are 4 kids to our parents, after parents expired without partition or will. Now I want to give up all my ancestral property rights to some one legally, so that they can c...

      By Anonymous Circle member
      /
    • CITY Governance Charges (CGC) on Carpet Area Basis?

      In a mega township project where one of the reputed builder charging CITY Governance Charges (CGC) based on per sq ft basis. It's nothing to do with building common area maintenance charges which i...

      By Mahesh Bhutkar
      /
    • H'ble SC asked GOI;- Is Govt willing to Ban Convicted Netas life long to Contest Elections

      A CJI Teared His Eyes. A CJI suggested Joint Meets of Judiciary and Executive. Another CJI deeply regretted and Seriously commented on Convicts Heading a Political Party and Share the Rule. T...

      By Csn Sarma
      /
    • Harazent by neighbor and society community

      What should we do to when a neighbor keeps harassing to us and our tenants who stay in our house which is in ozone villa society pune. When I was staying in 2014 with my six months baby and trying ...

      By Anjana P K Jain
      /
    • LEGAL AGREEMENTS

      Legal Agreements are a part of our every day life. We get into formal Agreements at various stages of our life. Parents sign on Agreements for their wards at school since minors cannot get into con...

      By VIJAYKUMAR N
      /
    • RWA Maintenance

      Hi, Would like to know is there are any court order or Law which gives flexibility for Owner/Tenant to pay the maintenance amount as per his/her convenience. Initially the m...

      By Anonymous Circle member
      /
    • Legal Position - Responsibilty of the Builder to hand over the common Assets

      We have come across a situation where our builder of a group housing of Villas and flats numbering 411 has put a condition thru some of his supporters In the RWA that he will transfer the common as...

      By LOGANATHAN KOTHANDARAMAN
      /
    • Disconnection of EB connection - to those Tenets whose license is cancelled by local body an

      Is there any judgement regarding disconnection of EB connection of a tenent whose license is cancelled by local body or panchayat and in a building which is colloapsed. Misuse of eb connection a co...

      By Ramachandran Sridhar Alias Krishnan
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)