Hi all,
I have a clarification regd service tax payment. I booked a flat in the month of Oct 2009 and the construction is going on and it will be handed over to us by end of this year. Recently I received an intimation from my builder saying that I have to pay service tax which comes around 1 lakh. When I enquired builder is saying that recently amendments happened in 2010 budget so we have to pay service tax as on date.
When I search in the internet I came to know that it will come into effect only after july 2010 and also our budget 2010 is yet to be passed in the parliament so service tax is not applicable for those who booked the flats before july 2010. But my builder is not accepting and he is asking us to pay the amount. We don't know how to tackle this. Whether legally we have to approach some one or how to approach this problem.
Also please clarify that service tax is applicable for us or not. what amendments has been done in our recent budget and since it is yet to be passed in parliament how is it applicable to us with retrospective effect. Please clarify.
Cost of my apartment is Rs.3250000 and I got service tax intimation from the builder for Rs. 96000. How they are calculating service tax. Pls clarify.
Please mail your answer to karthi.aish @ gmail.com
thanks.
Karthik
CAclubindia
