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Udaya Bhaskar

Wrote on 11 October 2012

I have entered an agreement for purchase of Flat in Oct 2009 and subsequently got sale deed done towards the land value (35%) in Dec 2009 (paid registration tax) and had entered separate construction deed (65%) at the same time Dec 2009 (paid vat on construction agreement). Subsequently i keep paying the payments as per completion terms. No where so far service tax is levied separately by builder. Now i am asked by builder to pay service tax when i am going to pay balance 5% as per terms to takeover the occupation. Now Builder is demanding to pay around Rs. 2,13,995 towards service tax. He says sale deed / construction deed clearly stated that later if there are any service tax applicable builder is right to collect. Can you advise i) on what basis service tax is applicable ii) is it on accrual or on payment of the money to builder iii) what rights do i have on this if builder demans iv) can i ask builder to give official demand note along with basis of calculation?