• service tax for small apartments

I am purchasing flat from dgpa holder/developer in an aprtment having only 10 flats(5 floors, 2 flats per floor) (muncipal permission is for stilt plus 4 floors only).
Builder is demanding to pay service tax over total flat value i.e nearly 1.2 lacs. I heard that apartments having less than 12 flats will not be charged service tax. please reply. Please send documentary proof link for the same to convince the builder
Asked 1 year ago in Service Tax from Hyderabad, Telangana
Dear Sir,

In my view, there is no such provision that service tax is not charged for apartment having less than 12 flats.

However in a recent case , Delhi high court has said charging of services tax on under construction flat is not valid. Please find the link below:

http://www.thelogicalbuyer.com/blog/no-service-tax-on-buying-under-construction-flats-rules-delhi-high-court/

Please feel free to call/revert in case of any doubts.

Thanks and Regards
Abhishek Dugar
CA CS B.Com
Abhishek Dugar
CA, Mumbai
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