We are planning to buy a under construction gated community flat in Hyderabad and registered the same in the month of March, 2017. Is there any kind of service tax has to be borne by us? The builder is insisting us to pay the service tax on the value of the registration of the flat of @ 3.75%. If at all there when the service tax has to be paid? After completion of the flat or before completion of the flat. Is there any G.O. to this effect is issued by the Central Government. The Local Circle Member expert can clarify the same which will be useful for most of them. more
Service Tax is payable on the service rendered by the agency. The entire building cost cannot be termed as "SERVICE" At the most the supervisory charges paid to the agency should only constitute service and tax is payable on that only and not on the registration value of the flat. more
Seeing all the comments It is understood that there is no clarity on the issue. May be Implementation of GST bring some clarity. Let us wait for July. more
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By Chunilal Malik
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