Dear experts,
I have purchased a flat few months ago in Hyderabad and have got the same registered in semi-finished stage . The sale deed was made for Rs. 30 lacs on which I paid the stamp duty and registration charges. As the total price of the flat is Rs.60 lacs, a separate 'agreement of construction' was made for the balance Rs.30 lacs amount. I have bought the flat from an individual who in turn happens to be the original land owner and this landowner has entered into an agreement with the builder to construct the apartment of 4 floors( 8 flats). The sale deed / agreement etc. is between me and the land owner(individual). My question regarding service tax is in two parts -
a) As I have bought the flat an indivudual (land owner), am I liable to pay the Service tax ? The owner does not have any service tax registration.
b) Incase if I am supposed to pay service tax , what will be the actual amount ? Will service tax be calculated only on the sale deed value ( Rs.30 lacs) ? Or, will it be calculated on total value of Rs.60 lacs ? What is the exact %age of the value that will be charged towards service tax ?
Request the knowledgeable experts to advice me on the above ASAP. Thanks.
