Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

Yesterday's newspapers had an article stating that service tax is not payable on sale of flat by builder to customer. I purchased a flat in Mumbai in 2008 & paid 5% VAT on the the total value. Somebody recently told me that some builders are refunding this amount. Can someone clarify as I am not getting any information from my builder.

Asked by Anand Patil, 05 Feb '09 02:52 am
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (2)

1.

In the state Promoters and Builders Association of Pune and Maharashtra Chambers of Housing and Industry among others had moved the HC, challenging the governments move to levy service tax on sale of flats in housing complexes with more than 12 units. According to them, builders or realty developers per se were not service providers. Normally, the tax is levied on the service provider who, in turn, passes the burden on to the user (in this case, the owner of the flat).

The finance ministrys Tax Research Unit (TRU) appears to have endorsed the builders stance, though the matter is still sub-judice. The TRU has clarified that a builder or a developer will not have to pay service tax if he does the construction on his own without engaging the services of any other person. In such cases in the absence of a service provider-service recipient relationship, the question of providing taxable service to any person by any other person does not arise, the clarification states.

PBAP of ...more
Answered by radhikamruta, 05 Feb '09 05:50 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

Send alawyer's notice
Answered by SRINIVASAN N, 05 Feb '09 04:27 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining