Any RBI rule for paying Service Tax for the House Property ?

POSTED BY smkalyan ON February 18, 2014 8:48 pm COMMENTS (2)

Hi,

I purchased a flat in November-2012 and we occupied the flat in Feb-2013. At the time of purchase my builder has informed us that there will be service tax to be paid by us. Is this true ? As I purchased the flat for X amount should I need to pay the service tax of 12.36% is levied on 25% of the total cost of purchasing. For ex: If I purchase the flat for 38L should I need to pay the service tax as Rs. 117420/-. Is service tax has to be paid by the buyers or the builders? Is there any RBI rule for this. Please help me out in this.

Thanks

Kalyan

2 replies on this article “Any RBI rule for paying Service Tax for the House Property ?”

  1. smkalyan says:

    Thanks Ashal for the clarification.

    Regards
    Kalyan

  2. ashalanshu says:

    Dear Kalyan, the buider is correctly demanding service tax from you. For your information, Service Tax is a Central Govt. Tax and RBI has nothing to do with it.

    Thanks

    Ashal

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