service tax is chargeable on payment basis i.e.
irrespective of the fact whether the paymet is received in full or in part
CIRCULAR-
Recently, CBEC has issued a circular in which it is said that considering the current period of recession and consequent slowdown in the business of property market, on purchasing a house in a aparment from property dealer, service tax is not payable untill the final payment is made. It implied meaning is that when a person bookes a flat by paying advance then at time of the payment service provider need not to receover service tax from buyer.
However, at time of the final payment i.e. while finalising sale deed, service prvider har to recover the service tax from the buyer. Ultimately we can say that considering the recession and bad situation of the Real State business CBEC has relaxed the buyer from statutory provisions by deffering the liability of Servive Tax.
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