Service tax on flat booking

Dear all,

I have booked a new flat for which I have paid some amount which the builder has kept as deposit in its accounts. Now, builder is asking me to pay service tax. Building is under construction. Documents are also pending to execute!!

My query is that for what purpose the builder is asking me to pay service tax!! If yes, then on what are the criteria / provisions to charge service tax.

Early reply is highly expected as the builder is pressurising me to pay service tax immediately.

Thanks & Regards,

Basant Maurya

Replies (1)

For an under-construction building, the service tax is liable to be paid. The Service Tax should be 3.09% on the total value.

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