POSTED BY February 18, 2014 8:48 pm COMMENTS (2)ON
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.
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2 replies on this article “Any RBI rule for paying Service Tax for the House Property ?”
Thanks Ashal for the clarification.
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.