PRATIK EDWANKAR
Q: I have booked one 2 bhk flat in pre launch. Now the builder is demanding service tax on the advance payment. My question is if the construction is not yet started then how come they ask for service tax now. It should be paid only construction starts or atleast when all the documents are in place

My replies to this discussion
Since they get funds which can be used for construction rather than using their own funds which they have to borrow from the market, the cost of fund borrowed from market is much higher than the pre launch offer rates in which they already include their profit margin, but may be 10 to 20% less, depending on what sort of deal they get.Since they get funds which can be used for construction rather than using their own funds which they have to borrow from the market, the cost of fund borrowed from market is much higher than the pre launch offer rates in which they already include their profit margin, but may be 10 to 20% less, depending on what sort of deal they get.
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