service tax on purchase of flat

Dear Sir

I am buying a flat of Rs 63000 and its a Comercial / Residental flat having 10 flats and 4 sohps in the buliding. Morover the Bulder having that particular land in his name were he devloped that apartment.

Now He is asking for 12.36 % service tax wherese up to 12 flats there is no service tax applicable 

Please advise sir what to do 

Thanks & Reagrds

Sanjay Srivastava  

Hi Sir,

Recently i  bought one apartment in hyderabad.

At the time of deal he never discussed about the service tax but now the builder/owner is asking me the service tax of 4%.

Please guide me over here.

Hi Sir,

Recently i  bought one apartment in hyderabad.

At the time of deal he never discussed about the service tax but now the builder/owner is asking me the service tax of 4%.

Please guide me over here.

The apartment is already built.

Regards,

Santy

Hi all,

As per the recent circular of Service Tax on construction of flats, there is no service tax is to be charged if the flat is constructed on a land of developer and made ready by him only as such transaction amounts to sale of flat and not of service.

In contrary, if a person gives land to contractor and asks him to construct the flat the way in which he wants then the service tax will come on it as its a service in form of customisation of flats construction and so builder will ask for the service tax as an consultant. Hes more of a consultant in this case than only builder.

Warm Regards.

Normally ( subject to special types of agreements the builder of apartments are not liable due to the fact that they transfer immovable property or alternatively the flat is meant for the personal use of the tenants therefore not a complex at all. This was clarified in the circular of January 2009 after which most builders stopped p[aying the ST.

hello Madhukar,

Regards,

hemant