03 December 2012
we are in real estate business and also developers.
My question is :
We are in abatement scheme 3.09%(i.e, 25% on 12.36%)
right now we develop one residential complex and only 40% flats are completed and occupied by buyers, still no society is formed by buyers and my company collects maintenance fee from flat owners and provide service to owners. In the above situation whether service tax is applicable or not on the advance maintenance fee collected from buyers.
If yes, i require proof to explain to my customers
03 December 2012
In the absence of SOCIETY ( Sale deed not yet executed), you are giving the service. So service tax is applicable. Some builders and promotors outsource this job so as to pass on the service tax applicability to this outsourced person.