venkata (sap basis consultent) 04 July 2013

Clarification regarding service tax

I have purchased a flat recently with housing loan 80% and rest of the amount paid by me(Rs.25 lakhs)Our flat falls under the land owner's share.Registration was done according to the Govt land value in that area(Rs.15.5 lakhs).We have 20 flat in our apartment. Occupany certificate has also not come till now. Builder is asking us to pay service tax and VAT. I have seen service tax circular and previous posts sent to you, still I have doubts regarding this. Hence our flat falls under the land owner share(but not builder), we need not pay service tax and VAT or what? Builder is asking us to pay ST and VAT as he paid it to Govt. and that part he is levying on us. Please clarify.

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Advocate Rohit (Advocate) 06 July 2013

As per the circular issued by the Ministry of Finance on 10th February, 2012, it is the duty of the developer/builder to pay service tax and in case of the MVAT it is to be paid by the dealer. in this case dealer is the builder/developer.

Thus, consumers/ flat purchasers are not liable to pay Service Tax and/or MVAT to the builder separately.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

venkata (sap basis consultent) 08 July 2013

our builder is compelling us to pay service tax and VAT . we need a strong base to aviode paying service tax and VAT. so, could you please guide us how to manage this situation . we think, it will be helpful to us if you send us the circular issued by Govt. of india reg service tax.

thanks for your reply.

venkata..