Service tax on my new flat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

11 December 2012
Dear sir/Madam,

Please clarify my below concern.
Recently I bought a new flat(Ready to occupy, occupy certificate already issued) for 30 lakhs which was divided into 22 laks as sale deed amount and 8 lakhs as addtional amenities amount and loan was also sanctioned by local SBI branch.

But builder has got already Occupancy Certificate from municipal corporation before we approach him and before sale deed date. After loan was sanctioned, I paid all the amount but now builder is asking me to pay the Service Tax. I showed him rule but he is arguing that while approaching bank as we have divided the amount into "sale deed" and "additional amenities" implies that flat under-construction and hence I need to pay the Service tax.
Please clarify my concern. Thanks in advance.

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CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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12 December 2012 Once the construction is completed and completion certificate is received in this regard and no amount is received prior to that date, no service tax is applicable in this regard.
The Builder can not ask for service tax. Amenities do not form part of construction.

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