Service tax refund for apartment purchase

Queries 1372 views 3 replies

Suresh

32 Points Posted on 01 January 2010

I purchased flat in April 2008 in bangalore. I paid money in one installment. The builder has collected money in 2 modes.

1. For the property purchase

2. For Construction

He collected service tax from me. Since the rules for service tax is changed now, how can i get the service tax refunded?

Thanks in advance,

Suresh

Replies (3)

sanjeev singh

articles

50 Points Posted on 04 January 2010

Firstly the contract has to be seen. If the contract for sale of flat then no service tax has to be charged by the dealer because it is a contract of sale. But if you have contracted him to construct the house then service tax is not applicable because service tax is applicable on the construction of residential complex consisting more than 12 residential units and a common facility for either of park, swimming pool, lift, water supply etc. So service tax is not applicable

prerna agarwal

student

51 Points Posted on 03 January 2011

I m a builder and have collected an installment regarding common facilities fom the buyer of the flat and paid service tax on the same to the government.Now this buyer cancels the booking of the flat and asks for the refund of the money paid so far. Am i liable to pay him back the service tax amount collected from him or not?

U S Sharma

glidor@gmail.com

21068 Points Posted on 03 January 2011

Originally posted by : prerna agarwal
	I m a builder and have collected an installment regarding common facilities fom the buyer of the flat and paid service tax on the same to the government.Now this buyer cancels the booking of the flat and asks for the refund of the money paid so far. Am i liable to pay him back the service tax amount collected from him or not?

cancellation of flats cater some penalty / forefeiture clause also, however if he can handover the same to 3rd party, then the taxes will get transferred to 3rd party automatic without keeping u in picture.