Service tax on purchase of land flat

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If any one purchase flat from a builder on january 2002, and made full payment as per the agrement, whether service tax is applicabe and  payable. If so the same shall be payable by the flat owner  to the builder subsequently in 2009, or builder shall pay on his own. However sale deed agreement does not refer any liability of service tax from the purchaser. But builder is claiming ST against it saying ST is to be paid even for purchase of land/flat etc.And if payable, then how much to be levied.

Replies (1)

In my view there is no liability in NORMAL purchase of apartments which is also clarified in circular 108 of 2009. The builder is transferring immovable property and therefore there is no liability. Alternatively he is building the same for your personal use therefore not liable at all.


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