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Galaxy apartment HDIL Kurla east are trying to get 2 lac extra in name of service tax intrest, get together and go court
Q: bought flat with 85% down when they said they will give possession in dec 2012 but now its may 2015 and they need more money in name of service tax inbtrest which they never told us before
Hi Aquib, Before taking any legal action, check you agreement whether there is any clause mentioned for compensation on delay possession and secondly, interest on service tax. If it is mentioned then consult a good legal expert and follow what he says.
Hi Aquib, Service tax is applicable on under-construction flats Since the flats are under construction, there is an element of 'construction service' in the agreement between builder/developer and purchaser. Hence, it attracts service tax. .
While service tax is charged at 12.36%, in case of under construction flats, the effective rate works out to 3.09% of the value of property. This is because service tax is not applicable on the entire purchase price.