Service Tax on Purchase of a Flat
Dear Sir,
This has reference to the answer by Tapas Mishra to my querry, dated,03/03/2009, where in I was advised that no Service Tax need to be paid by me as per the Circular No.108/02/2009-ST
On contacting my builder regarding the payment of my last installment of Rs.2.20 lakh and registering the flat in my name, he is insisting that I have also to pay the Service Tax amount @ of 10.43%.
Can you please advise me the course of action to be adopted in this matter which may include even the intervention of the appropriate authority(?) at Bhubaneswar for sorting out the issue?
Thanking you,
2 Answers from Attorneys
Re: Service Tax on Purchase of a Flat
In addition to what Mr. Rohini Kumar has rightly suggested, I'll recommend as follows:
It is likely that the AC Service Tax may not like to commit himself in matter that is not before him. The builder may believe that since he can pass on the laibility of tax (rightly or wrongly) by resorting to string arm tactics such as refusal to register, he may also not be too responsive even if the Cicular is read to him.
The advisable course for you is firstly to show the Cisrculat to the builder. If he agrees, fine. If he does not, and still insists on demanding service tax, you should send him a strong legal notice. If you have paid any service tax as part of earlier instalments, please demand a refund.
Re: Service Tax on Purchase of a Flat
Mr.Tapas is right,further you can meet the concerned Assistant Commissioner Central Excise & Customs-Service Tax cell for confirmation and authentication.There after you can show the related circular to your builder.As it was a very recent notification issued by BCEC the builder might not be aware of the rule.
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