Q: Dugar housing has engaged GK Shetty builders as contractors and they have to charge Service tax on their billing to Dugar housing, and Dugar Housing has no further liability to charge service tax on the consideration received from the buyers who purchased the residential property from them.
Hence it is very clear Service Tax is not chargable by Dugar Housing.
This point is also mentioned in attached Circular No. 108/02/2009 – ST
F. No. 137/12/2006-CX.4
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
***
New Delhi, dated 29th January 2009
Subject: Imposition of service tax on Builders - regarding
Dear Raj & Madhu, There is one more article came in hindu stating reduction of Service Tax, Basis that i spoke with the Admin office at Dugar (Egmore) they said its not yet ammended / approved by Tamil Nadu Government. So I don't think you can claim this.
Dear Rajkumar,
THis is interesting observation. Dugar has collected the ST from all. Do you think owners who already paid can claim from Dugar.
Madhusudan (13_303)