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Service tax on property

Queries 1073 views 4 replies

In Oct 2010, I got demand letter from builder for my under construction property,

There service tax was mentioned around 2.55 % (approx).  THat I didnt pay that time.

TOday rate of service tax is 3.09,

So currenty builder is asking to pay at rate of 3.09% + interest (for 21 month at 18% pa) ,

Is it correct ? Do I need to pay at 3.09%  or 2.55 % (approx)  

Thanks for reply.

WHich profession should I contact like ca or lawers for check my property papers , service tax , vat etc to be safe

-Aryam

Replies (4)

a CA who is dealing in indirect taxes can help 

if interst is payable then old rates will prevail, if new rates apply then interest would be maximum from april 2011

Dear Sir,

I purchase my flat in PUNE 2009 and last week builder ask me to pay saletax 5% ( service tax ) for this as Maharashtra Govt. apply some rule on it.

I don't have any idea so please help me what to do.

Thanks in advance,

Regards,

- Abbas

Abbas I think you are refering to VAT.

There are 3 ways of calculation of VAT for transactions between June 2006 to March 2010.

But the VAT is applicable on the builders & Purchaser is not liable to pay the same.

Whether VAT is to be reimbursed by the Purchaser to the Builder would depend on case to case basis & on factors like is the construction complete, has to builder handed over the possession, is a CHS of purchasers duly formed, etc,.

 3.09% is from 2012, but you are suggesting to pay interest from 2011,

Is it correct ?

Is there any link for such rates?


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