Service tax collected @ 3.09% by a builder in kerala

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This query is : Resolved

Chacko Tharakan (Querist)

21 June 2016 Sir,

Can a builder collect service tax on following expense heads
_Electricity Energy Meter
_Corporation Building Tax
_Kearala State Electricity Board Deposit (Own Your Own Electricity Connection)
_Registration Expenses (mainly value of stamp duty paper)
_Construction Workers Welfare Fund)

Please let me have your input on above.

Thanks and regards,

Chacko Tharakan

Rupesh Jain

Rupesh Jain (Expert)

21 June 2016 these are the govt. tax & cess these builder have no service, he also taken monthly charges for doing this work then monthly charge will be subject to service tax.

Chacko Tharakan

Chacko Tharakan (Querist)

21 June 2016 Let me make my query more clear. The amount collected by builder on various expense heads "is one time charges" and has nothing to do with monthly charges for their services. The builder collected the amount prior to registering the flat and as you can see the expense heads, basically these are deposits. For your information, I had been to Kearla Electricity Board Office and checked with them on the issue of "Service tax" o deposit. They had answered there is no service tax for deposit

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