Dear Sir,
I have one query regarding service tax and vat.
I had purchased a flat in Pune.
Details of flat as below in short.
The owner had purchase a portion of land 10 yrs back with single storied building, constructed another two floors on it by taking housing loan from a Nationalized bank. Repay all the loan amount 2 to 3 yrs back. Now there are total 3 floors. Ground, first & second.
The flats were in ready possession except occupation certificate from PMC.
Then we undergo agreement to sale of the flat with undivided 1/3 portion of land. 90% of the amount is paid to owner within one month after registration of agreement to sale. After our agreement to sale, he got the occupation certificate from Pune Municipal Corporation and he gave us the actual and peaceful possession of the flat. We pay the balance 10% amount to the owner at the time of possession.
Now the owner is asking for VAT and SERVICE TAX amount from me. He is not registered under service tax / vat and do not have any service tax no / vat no. He is not a builder or developer. He had build those flats for himself initially by availing housing loan and sold it to 3 different people.
Should I pay the amount of service tax if he had not given me any services? If its trading, he had not any vat no and should I pay the Vat?
Waiting for a expert openion.
Regards,
Dr. C. D. Shindgikar.
