I have purchased a flat three months ago at Hyderabad and have already got the same registered. It is an under construction flat and expected to be ready for possession by May 2015. The flat that I have purchased comes under the share of the land owner and not the Builder/developer. The sale agreement / registration etc. has been done between the land owner and myself and accordingly all the payments that I have made so far is directly to the land owner directly.
I would like to know from your expect panel if I am liable to pay any Service Tax even when I have purchased the flat from an individual(land owner) and not from the Builder ? I was told by a friend of mine that if the flat is purchased from the owner (individual) , then there is no liability of Service tax. Service tax is liable to be paid if the flat is bought from the Real estate company / Builder etc. who have service tax registration no. and hence such a service tax registered company can also provide a Service tax invoice. The same may not apply in the of an individual.
Request your expert views and reply.
Regards/Sandeep, Hyderabad
