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Amit Sikri (Project Manager)     25 January 2014

Service tax on purchase of flat

I had booked a flat in Asansol in 2010, now the flat construction has completed. Now the builder is asking me to pay 3.09% service tax along with the registry charges. The Agreement value is less than 20 Lakhs. He is also charging me service tax on the allotted parking space for which i paid extra amount other than the flat value. My question is as below:

1. Is Service Tax applicable?

2. Do i have to pay tax on parking area?

3. The registry charges being charged are as per the applicable rates which are higher than the agreement value so will the tax be calculated on agreement value or the value municipality is claiming to be the market value?

Please advise me at the earliest with the sections if possible.

Thanks to all in advance for providing the correct information.



Learning

 5 Replies

Advocate Rohit (Advocate)     25 January 2014

Yes, Service Tax is payable for the flat booked under construction or before getting occupancy certificate (O.C) of the building from the municipal corporation.

The Service Tax is to be paid by the builder, but builders are recovering them from the flat purchasers. Further, if the agreement value is less then the ready reckoner rate, then the Sub-Registrar office shall consider ready reckoner rate for calculating stamp duty.

 

As far as the parking is concerned, the service tax is charged on the agreement value and not the amount outside the scope of it.

 

For further query you call on the below given number.

 

Regards

Advocate Rohit Dalmia

9324538481

Mumbai

Amit Sikri (Project Manager)     25 January 2014

Will service tax be payable if the agreement value is less than 20 lakhs.

shail (ENGINEER)     01 March 2014

Hello,

I purchased and registered a flat (ready possession) in chinchwad in 1 Sept. 2013. and paid all the dues before possession. I have some quires.

1) Just(after 18 month) received. service tax amount from builder without interest. can I ask builder for interest.(I have signed on acknowledge paper which said that I will not demand any thing regarding this.)

2) Flooring of one of the bedroom was bed in condition at time of possession, informed the builder via e-mail, after to many intimation by mail and phone nothing was done. now they are saying we will not repair flooring. what should I do? they have not replied a single mail.

3) At the time of agreement, we had given 18 months maintenance. 18 months completed in feb-14. now builder is asking for maintenance for quarter ending on 31 march. I have to pay or deny?

udaychakraborty   14 January 2015

Sir,

I have decided to purchase at Bolpur, Dist. Birbhum,, west bengal, from a promoter a ready flat (but completion certificate from proper authority not obtained) of 951 sq ft super built for Rs.15 lac.

Please advice that there it is required and service tax to be paid. If yes, state the percent of taxes and to whom?

With regards

Uday Chakraborty

Swap (SE)     05 February 2015

Does service tax is payable by buyer to builder if the building/flat has received "Part Completion Certificate"  from local Govt authority? Property is in Maharashtra state.


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