Service tax on constructed flats

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2016 Dear Sir,

Kindly clarify me on the below case.

I booked a apartment which is going to construct with in 2 year.We entered the agreement with builder for the same and we have to Make payment accordingly construction basis.

Now when they issue demand notice for part payment they also asking for service tax,when we say you not issuing any invoice to us why we pay service tax to you ?? after that they issue us receipt for same amount of service tax and saying this is receipt we issuing against service tax only.

We say to them we will pay you all service tax only when you issue invoice after transferring flat ,then they denying and say you have to pay service tax along with part payment.

My question are

1. If they don't invoice to us how can they collect service tax from us.
2. Why they not accepting that we pay all service tax at the time of issue invoice instead of along with part payment.
3. Whether any authority is there where we can lodge our complaint stating they are collecting service tax without issue any invoice.
4.Whether we can send our receipt of service tax to service tax department to know whether they deposit the same or not.

Kindly advice

i shall be very thankful to you.

Expert : Anonymous

Expert : Anonymous (Expert)

14 September 2016 dear anonymous, answers to your query are as follows:- 1) the demand they issue are deemed as invoice as per service tax department hence they do not need to issue separate invoice for that. 2) as per service tax rule () builder need to pay service

Expert : Anonymous

Expert : Anonymous (Expert)

14 September 2016 2) as per service tax rule l builder need to pay service tax each time they raise demand instead of receiving the amount from client...since service tax is indirect tax i•e• they need to collect from customers and deposit to the government. so they have to ask for service tax from you and you have to make payment every time they demanded not at the time of possession... 3) since they are not doing anything wrong with you thus you cannot make complain against them..still if you think they are harassing you then you can lodge complain at consumer court under jurisdiction.. 4) yes you can reach to service tax of that who have jurisdiction on the builder and ask them to check whether they are depositing ther service tax or not but it will not be possible to check whether they are depositing your paid service tax or not as there is no such measure for checking.. hope your query are resolved.

Upgrade to CAclubindia Pro. Subscribe Now!