Is Service tax applicable onadvance 2 yrs maintenance chrges
Santosh Kale
(Querist) 04 October 2016
This query is : Resolved
Dear Sir,
Our builder have charged 12.5% service tax on one time 2 years advance maintenance charges & have given a receipt of maintenance charges only.
Is it applicable?
Pl advice.
With regards,
Santosh
Ms.Usha Kapoor
(Expert) 04 October 2016
For under construction property the builder is within his rights to collect advanced service Tax fr two years + maintenance charges .Once you get the completion certificate of the flats you need not pay any service tax maintenance charges to the builder. If you appreciate this answer please click the thnk you button on my profile.
Santosh Kale
(Querist) 04 October 2016
Madam, Thanks for ur good advice. But after giving completion certificate of his architect, he has collected 2 yrs advance maintenance charges plus ST during possession of flat. so is it applicable? Pl advice.
Santosh Kale
(Querist) 04 October 2016
We have already paid Service tax @ 3.09% of basic cost of flat during construction.
Santosh Kale
(Querist) 04 October 2016
We have already paid Service tax @ 3.09% of basic cost of flat during construction.
adv.bharat @ PUNE
(Expert) 04 October 2016
After getting completion certificate then u need not to pay service tax & maintenance.
Rajendra K Goyal
(Expert) 04 October 2016
service tax on flat / building construction and maintenance charges are different, not related to each other.
Rajendra K Goyal
(Expert) 04 October 2016
service tax on flat / building construction and maintenance charges are different, not related to each other.
Santosh Kale
(Querist) 14 October 2016
Dear Sir/Madam,
After paying 3.09% Service tax on my constructed flat & after getting possession of my flat, builder has collected 2 yrs advance maintenance plus service tax 12.5% on maintenance. Is it applicable?
Pl advice.
Rajendra K Goyal
(Expert) 15 October 2016
In my view it is applicable. For further clarification, may post query in CA club India and or consult local tax consultant.