Legal Question in Real Estate Law in India

Service tax on purchase of apartments
My builder is demanding service tax for the apartment. Please can you give me details on payment of service tax and also whether it is applicable for the premises like which we own, which is less than 12 storeys. I was told that less than 12 storeys would not be liable to pay it. Please advice on the same and also give me any landmark recent judgment.

Asked on 1/10/09, 2:10 am

3 Answers from Attorneys

Tushar Bungley Tushar

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Re: Service tax on purchase of apartments

Service tax has to be paid with a residential project having 12 units. If the builder has is demanding the service tax as per the provisions then you have to pay it.

Answered on 1/12/09, 2:32 am

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Shrichand Nahar S.V.Nahar, Advocate

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Re: Service tax on purchase of apartments

The service tax was proposed not on number of storeys, but on number of flats.

However, as of now, Service Tax is not applicable.

Most of the builders are taking an undated cheque from the flat purchasers to meet the liability, if made applicable. For this purpose a proper agreement is drawn up between the builder and purchasers.

Answered on 1/11/09, 12:16 am

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