Service tax payableon purchase of residential property
Shashank Paradkar
(Querist) 11 January 2012
This query is : Resolved
Dear Sir,
I have purchased residential flat in Sept 2011. The builder was supposed to give possession in Nov/Dec 2011 but since due building was not complete the possession was delayed. Now finally i will be getting possession this month i.e Jan 2012.
The builder has informed me to pay 2.575 % of agreement value as Service Tax. Am i liable to pay service tax now...?
Also, what proof i should ask from the builder towards payment of this tax to concerned department. The builder will be issuing me a receipt of this service tax payment.
I have also done payment of 1% VAT on agreement value. What proof should i ask from the builder for this too apart from the receipt issued by the builder.
Pls. guide me on this.
Regards
Shashank
R.Ramachandran
(Expert) 11 January 2012
Yes, one is liable to pay service tax on such transaction as narrated by you.
Raj Kumar Makkad
(Expert) 11 January 2012
You are liable to pay service tax as it has become mandatory now to be paid by the buyer through builder. You can obtain the copy of bank challan wherein such builder had deposited the amount of tax in the State excehquer.
prabhakar singh
(Expert) 12 January 2012
Q.Am i liable to pay service tax now...?
Answer:Yes! you are!
Deepak Nair
(Expert) 12 January 2012
I too endorse the views of ld. experts. You are liable to pay the service tax.
Sailesh Kumar Shah
(Expert) 12 January 2012
Am i liable to pay service tax now...?
Ans.yes
What proof should i ask from the builder for this too apart from the receipt issued by the builder.
Ans. receipt is suffice. check it that it contains Service tax no.
