Service tax on commercial building

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2012 Dear Sir
we are engage in commercial Builders as a builders.
our one commercial mall project has been completed but there is some doubt about the service tax Liability.
so for protection in our self we mention a Para in sale deed As
" the seller has received form purchaser whole amount of sale consideration including service tax. The amount of service tax to be refundable by seller incase if service tax is not applicable in future."

Querist : Anonymous

Querist : Anonymous (Querist)

07 May 2012 is above para is sufficient to protect our self form service tax liability.

Please tell me.

thanks

CA Nikhil Jhanwar

CA Nikhil Jhanwar (Expert)
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07 May 2012 As regards service tax liability service tax is indirect tax and you can charge and collect the same from service receiver. But since you are collecting the service tax you have to pay the same to the government.

Your para is absolutely correct and unambigous. So go ahead with it. But be ensure that if in future service tax is not applicable on your project then you have to refund the same to service receiver.

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