Service Tax on a Flat at the time of possession

POSTED BY Dhananjay Khanna ON November 17, 2012 7:22 pm ONE COMMENT

I had bought a Flat in Greater Faridabad in March 2010. Made a down payment of 90% of the total cost in March 2010.

Recently my builder has got the occupancy certificate from DTP, Haryana and subsequently he is offering Possession to all the Flat buyers.

However as part of the final demand, he is asking for Service Tax on the leftover amount.

The leftover amount is charged under the following heads;

1. 5% of the Basic Sale Price
2. Escalation Due to Steel (100%)
3. External Electrification Charges (100%)
4. Fire Fighting Charges (100%)
5. Servant toilet Removal Charges (100%)
6. Labor Cess (100%)
7. Bulk Supply of Electricity (100%)
8. Electricity Meter Install. Charges (100%)
9. Registration Charges (100%)
10. Admin Charges (100%)
11. Adv. Annual Maintenance Charges (100%)
12. Annual Bldg Insurance Premium (100%)

Would like to know, from the above list of heads under what all heads the builder should charge service Tax and at what rates.

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