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