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Author Topic: Service Tax on Property  (Read 131 times)

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Offline Gauravdatta1

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Service Tax on Property
« on: September 11, 2017, 09:22:54 AM »
I purchased a flat in noida in 2012 for total cost of 60 lacs. This included service tax cost of 2 lacs which was also paid in full. Before the builder received completion certificate I transferred the flat, with the builders consent, to a bigger unit in same complex. Additional cost to be paid for larger area of new flat is 10 lacs over purchase cost of old flat. Thus purchase cost now is 70 lacs. Now that my original unit has been replaced with the new unit and additional money is to be paid towards additional area purchased, the builder is not giving credit for service tax paid earlier since he states that service tax paid on old unit cannot be transferred to my credit thus he is asking me to pay 12 lacs instead of 10 lacs. He claims that while he won't give credit of ST paid earlier but he won't charge tax on additional money to be paid since he has received completion certificate. Is he correct in not giving me credit for 2 lacs already paid for service tax? Regards

 

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