Service tax clarification for Villa in Hyderabad ?

POSTED BY harishmandapaka ON March 8, 2014 10:39 am COMMENTS (3)


I have bought an VILLA at Hyderabad  worth 50 Lakh rupees, Builder is not giving the differentiation between the  Land Cost and Construction cost,

Question 1) In this case what will be correct service tax which can be paid,

Question 2) How can i be sure if builder is paying that money to GOVT\’s Service tax Account.


3 replies on this article “Service tax clarification for Villa in Hyderabad ?”

  1. ashalanshu says:

    Dear Harish, you can not claim refund of excess Service Tax from the Govt. paid by you to your builder. 🙂



  2. harishmandapaka says:

    Hi Ashal,

    Thanks for the prompt response,

    I came to know that builders pay service tax monthly , so it will be difficult to know if they have paid all money which we have paid to him ?

    Not sure if this a valid scenario:
    should i pay whatever 4.08 % Service tax on total amount , and can apply for refund with if i have paid more.


  3. ashalanshu says:

    Dear Harish, please get the receipt of your service tax payment from the builder. On the receipt, builder’s service tax registration number should be printed and you can check it online that the number is correct or not.

    Regarding your builder is not co-operating with you for bifurcation of land and construction cost, can we help in it in any way? My personal take – please cancelthe deal and opt for some other property where the deal is fair but I know, you ‘ll cry foul at the suggestion.



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