Can a builder collect service tax on following expense heads _Electricity Energy Meter _Corporation Building Tax _Kearala State Electricity Board Deposit (Own Your Own Electricity Connection) _Registration Expenses (mainly value of stamp duty paper) _Construction Workers Welfare Fund)
21 June 2016
these are the govt. tax & cess these builder have no service, he also taken monthly charges for doing this work then monthly charge will be subject to service tax.
21 June 2016
Let me make my query more clear. The amount collected by builder on various expense heads "is one time charges" and has nothing to do with monthly charges for their services. The builder collected the amount prior to registering the flat and as you can see the expense heads, basically these are deposits. For your information, I had been to Kearla Electricity Board Office and checked with them on the issue of "Service tax" o deposit. They had answered there is no service tax for deposit
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