I have purchased a flat before construction started on it. The agreement was signed by us sometime in May. Am I liable to pay service tax on this purchase? If yes, at what rate? We are in the process of paying the amount in instalments slab-wise i.e. as and when each slab is laid down.
Can anybody shed some light on this issue?
Dear Gurpreet
Service tax is levied on services provided by a service provider
You have purchased a flat. At the outset there is no service provided.
But it should be seen whther it falls under Construction of Residential complex services
Pls elaborate...
Well, the flat is being built in a residential complex, Royal Palms to be precise. Till sometime back there was no service tax on this, but then the government decided to levy it now, at least thats what the builder is claiming.
Dear Gurpreet,
Pls refer to this - /forum/service-tax-on-under-construction-residential-bulding-92792.asp
Thanks,
Ganesh
CAclubindia
