Treatment of service tax while purchasing flat

Rahim (Businessperson) (460 Points)

12 March 2013  

Need clarification regarding treatment of Service Tax while purchasing a flat.


The Developer charged 3.09% ST before the date of Registration. The consideration was fixed at Rs 15 Lacs.The purchaser has paid Rs 15 Lacs as advance on 12-06-12 by cheque and paid ST @ 3.09% on Rs 15 Lacs,  Rs 49350. The registry was done on 01-02-13 and in the deed the consideration of only Rs 15 Lacs was mentioned. What about Service Tax?

What will be the enties in the books of the Developer and the Purchaser? Would the service Tax be added to the cost of purchase of the flat by the purchaser?

Please clarify.