Q: Hi,I got a quick question, A quick search reveals different answers from different forumMy question is i bought an under construction apartment in April 2010, I paid about Rs 5 Lakhs before 1 July 2010, Now apartment is ready for possession(Completion certificate of an Apartment should be 2012) , My question is whether i need to pay service Tax on entire amount or have to pay after deducting 5 Lakh?Currently i have to pay Rs 80000 as a service Tax however if i deduct Rs 5lakh from total Cost of Apartment(Nearly 40 lakh) i would save approx Rs 10000Please confirm if i have to pay Service Tax(Approx 4.2 %) on Total value of an apartment or after deducting Money which was paid before 1 July 2010?RegardsShobhit
As far as I know service tax is what you pay for service that you have utilised. Now since you have bought a flat it will be charged for entire work behind the construction of flat. So irrespective of installments you have paid you will have to view through flat related context. Please suggest me if I am wrong. I appreciate responses.
I think it is better to take advise from a legal expert. My self experience says service tax issues are very confusing and different people give different suggestions.