A flat has been registered one year back, entire amount has been paid except 1 lakh, it was mutually decided to be paid by possession, but now the builder is demanding more money, reason behind service tax increased, my question is this a legal demand?
when the flat is registered and all taxation has been paid and the only matter was for possession, then how can a builder charge 2.06% service tax on entire amount now.
Please help me to for further
Regards
Suraj
It is mandatory on the part of the Builder to Register the flat under construction after he has received 20% of the total consideration. As far as payment of service tax is concerned, if the construction of flat is completed before imposition of service tax under this service, no service tax would be payable. Here, Completion means either a certificate from the local authority towards completion of the flat or a certificate from the chartered engeer or an architect to that effect. But in any case, the builder should not demand the service tax on the whole amount.
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