Hi,
I have a query regarding the payment of Service Tax. I have booked a flat in Bangalore with Oceanus Dwellings...The construction started way back in May 2006. The apartment complex consists of more than 12 units and as per the builder they have outsourced the work to multiple contractors...
Now the query is .. when I booked the flat in Feb 2008, the builder never mention anything about Service Tax. Now the construction is almost ending and they are telling that I have to pay a service tax of 4.12 % and sales tax of 4%. Could you please let me know if I have to pay the service tax ?
On the "Agreement to Sell" document they have mentioned the following in the payment section after the section of the total Flat's Cost:
"Apart from the aforesaid sale consideration as set out in clause 1 above, the Purchaser/s shall also be liable to pay: a) The deposits and/or other charges or levies demanded or required to be paid Bangalore Development Authority, Corporation of City of Bangalore or any other Governmental/Statutory Authority and or other taxes if any (current or future) and levies that may be applicable/payable to Central or State Government or any other authorities, betterment or other levies in regard to the schedule 'C' apartment."
Kindly let me know.
Thanks is advance !
Chintu Raju
CAclubindia
