Service Tax is Applicable on Purchase of Flat

This query is : Resolved

PREMAL (Querist)
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16 February 2011 Dear All

Please advise for Service Tax Payable on purchase of Flat at Virar.As my builder says that service tax to be payable by us extra. So please advice weather we have to pay or not or what answer we have to give to him.

rajula gurva reddy

rajula gurva reddy (Expert)
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20 February 2011 Being purchaser of a flat, you need not pay any Service Tax. If the person, who is selling the flat to you, constructs the flats on his own on a owned flat also, he need not pay any Service Tax. In case, if the seller constructs flats on development basis, he has to pay service tax under construction services on the consideration to the extent of value of the percentage of the flats he got under the agreement with the land owner. In such case also either he has to bear the Service Tax on his own or he has to collect the Service Tax element from the land owner. In any case, the seller can not collect Service tax from you. If any body insists, please obtain a bill where in he shows Service Tax separately. If you show that bill to any CE authorities they will register a case against him and collect the amount of Service Tax collected along with interest.