Service tax has been increased by 2% from 1st April 2012 onwards.

Q: The builder has asked to pay 16k immediately as the service tax has been revised by the government from 1st April 2012 onwards. Aren't we supposed to pay revised service tax only on outstanding amount, not on entire amount? Thanks.

Anuj, Apartment Resident

1st May 2012

Property Tax in Corporate Suncity Gloria Block B, Sarjapur Road, Bangalore

revised service tax

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Service Tax rule and procedure is still unclear for number of buyers buying property in India. I feel the builder should send the buyer an email on what is actual price of property, how much you already paid and what is outstanding amount, Service tax on property etc. I think builders calculate service tax on under-construction properties on price of property but it depends on the outstanding amount. The builder cannot ask service tax for amount already paid. In case you have any confusion or need a guidance, you can ask legal expert on the same.

Jayanth, Bangalore

18th May 2012

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As far as I know you have to pay service tax only on outstanding amount not on entire amount. For further details you can take advice from your legal expert.

Manoj, Bangalore

2nd May 2012

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