I've Purchased a property from a Big Builder in the year 2014 and paying theirs demanded amount as per Milestone achievement as per agreement. In their Demand they have collected Service tax from 3.09 % to 3.75% from 2014 to current. Now we want to change the flat in the same Project. Now they are demanded all demand of new Flat as per the current Service tax of 3.75%. is this the right to give current rate of service tax or they are demanding wrong.
example:- for a flat of Rs 50 lacks, we had made a payment of Rs 20 Lacks in the year 2014 with 3.09% service Tax, we have paid- Principal= 20 lacks, service tax= 61800, and Rs 10 lacks in 2016 with 3.75% rate of service tax, principal = 10 lacks, tax= 37500. that means total Principal paid for old flat is 30 lacks and tax= 99300. now we have changed our flat and they are demanding Service tax difference with 3.75% for all the payment we have made to them, amount of 13200 ( 99300 paid previously, but they are asking for 3.75% on 30 lacks amounted= 112500, 112500-99300). is they are asking as per the law or is there any discrepancy in their demands.
Pl confirm.
CAclubindia
