Service tax liability on purchase of flat
Malay Dutta
(Querist) 07 March 2013
This query is : Resolved
Dear experts,
I had booked a flat in March'12 and made the payments in installments through bank loan. I registered the flat in Nov'12 and have been provided the possession of the property by the builder and have been paying my electricity bill etc ever since.
The builders have now contacted me saying that I need to pay an addditional 3.1% of the total amount as service tax. Nothing about this was mentioned in the agreement. I need an advice about my liability in this case. Am I really liable to pay this amount or is the builder trying to pass off his liability on to me. All other buyers of the flat on that land have similarly been contacted by him.
Thanks and regards,
Malay.
Devajyoti Barman
(Expert) 08 March 2013
Though it is not mentioned in the agreement, paying service tax has become mandatory off later.
You make the payment as it the liability of purchaser only to pay the service tax.
Raj Kumar Makkad
(Expert) 13 March 2013
The demand of the builder is accurate and legal as the buyer has to pay service tax as per rules, however, the rates should be got confirmed from the local office of VAT.
Raj Kumar Makkad
(Expert) 13 March 2013
You are required to enquire from the office of Income Tax and not from VAT as typographic error persists in earlier advice.
