service tax on house property

I have purchased a flat in mar 2010. all payments made in april 2010 . only society formation, MSEB and society maintenance charges are remaining which amt. is rs.50000 payable in nov 2010 when i got the possession. Am I liable to pay service tax on this amt while this amt is not related to construction of house property ?

If yes, then plz guide me, is there any scope of tax saving ?

Replies (5)

Yes, if there is a contract or agreement for the said services then you are liable to pay service tax as maintainance and repair services of immovable property are taxable services.

Scope of saving tax can be there only if there is no agreement for the same.

But one more thing I would like to say is that if it is a society formed by the residents of the apartments only then you do not need to pay any service tax as it is a self service.

But if the society outsource some maintainance service providing company then the maintainance service provider company can charge service tax from the society, that too if there is a contract between the society and the company.

Good explanation

I read a article that if any amt paid after receiving completion certificate, then there is no need to pay ST.

So If I pay this Rs. 50,000 after apartment deed, then can i save ST on it ?

what is the rate of ST on residential property b'coz i heard that it is reduce to 0.50% from 2.575% ?

 

Thanks

Service TAx would be appliacble under "Management, Maintenance or repair' serivices (zzg) if there is a agreement or contract. There is no possibility of avoidng Service TAx even after getting completion certificate.  Completeion certificate will be available only for completion of transfer/construction of immovable property.  But, service is not like that.   

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