11 November 2010
i have purchased one flat in september 2009 .the registry was done on 25sep 2009 on .that time i was unaware of service tax to be paid ,also the builder has not mentioned it anywhere .now the builder is asking for the service tax 4.5% on total sale consideration of 21 lacs at the time of possession in nov 2010.it comes to rs 94500 & is a great surpise to me. is service will be applicable to me .From which date it is effective.The builder was telling that it is effective from 2005.
13 November 2010
Service tax is the responsibility of service provider ( builder). however he can recover the tax from buyer( you) as per the agreement of sale. If the prices were inclusive of tax, then you should not pay the tax.
CAclubindia
