Service tax on under construction of property

This query is : Resolved

RAJEN KHONA (Querist)
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19 June 2013 Please guide me on the following matter

I had booked office premises in under constructed property. I was regularly paid their installment as and when due. In addition to this he is charging Service Tax also calculated on my installment amount and this also paid.

Now I sold this office to other person. The property is not registered till date so now the procedure is to cancel and return back to Builder and he will allot this property to the other person. Now he is charging from the other person total amount along with service tax again. As he is already collected service tax from me, why he is charging again from that other person.

Please guide with proper Law.

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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20 June 2013 As per the Rule 6(3) of the Service tax rules 1994, the service provider(in your case Builder)can take the credit of service tax paid on your services which is cancelled.

for the other party to whom he sold the building he has to charge.

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RAJEN KHONA

RAJEN KHONA (Querist)
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21 June 2013 Thanks o Lot

One more point, whether He(the Builder)can set of this credit against his current liabilities of service tax or he has to claim refund??

Please guide on the matter with proper section

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CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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21 June 2013 The Builder can claim set of this credit with current Service tax liability as per the Rule 6 (3) of the Service tax rules, 1994