Whether gst and service tax be paid on the same property

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sneha (Querist)

31 May 2019 Respected Sir/Madam,

My client has paid full advance money (including service tax) for purchase of property before July 17 when property was under construction, my client has deducted TDS on whole property value, property is constructed in may 19 and now builder want to sale this property to someone else and is giving refund to my client, builder is saying that refund will be granted net of TDS and Service tax. and saying that He (builder) will charge GST from new Buyer.
My question is
1)whether Single property be taxed for Service tax as well as GST?
2)Whether my client can claim Service tax Amount back from Builder and ask Builder to collect the same from new Buyer?
3)What about TDS, Whether my client can claim TDS amount back from Builder?

Thanks in Advance

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

01 June 2019 1 No.
2 Yes he has to refund service tax amount also.
3 No, file return and claim TDS refund.
Besides refund of amount paid he has to pass on the benefit/compensate for increase in sale price now.

sneha

sneha (Querist)

02 June 2019 Sir, we have deducted TDS of builder on purchase of property so how can we get it back by filling return? please elaborate on this point.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

02 June 2019 Sorry the builder has to refund the TDS deducted as it has gone to his income tax account.

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