In my opinion, you are not liable to change rate of service tax. From service tax point of view old rate is applicable when you have make the payment and agreement has been entered. On your case you have done so at older rate. Moreover from legal point also builder is changing the possession because of his delay. Why you should be penalised for the same?
Applicability of service tax
I want to know about applicability of service tax is the date of payment or date of transfer. I booked 1 bhk in hiranandani estate thane in 2013 and paid all the instalments with service tax till date the possession is not offered and all the demand are paid except possession demand now due to location problem builder has changed my booking to another tower in same project without any additional cost but demanded for difference of service tax as per builder in have paid service tax @ 3.5 and now the rate is 4.5% hence I have to pay the difference amount though I have already paid all the instalments so my question is whether I should pay the difference or it will not be applicable as I am not paying any thing at present pls guide thnks
Asked 7 years ago in Service Tax
thanks a lot mam but as per builder the new flat they have alloted in Jan 2017 hence I have to pay service tax at current rate but I have not paid any money at present hence the rate of service tax should be the rate prevailing at the time of payment and not of current rate pls guide
Asked 7 years ago
Yaa.. but you should stand on the ground that service tax liability arises on advance paid. Not on allotment date. So you are not liable for increased rate
If you want I can give u a letter explaining legal provision, provided you are interested to take this paid service.
Dear Sir,
In my opinion, you are not liable to pay any service tax on the advance already paid by you.
Hello Sir,
As per the information provided by you, it appears that you have already paid the amount you were liable to pay to purchase your property and also you have entered into an agreement to sale. In such a case, you need not pay any amount of service tax as you have already paid the amount you were liable to pay.
Trust this clarifies your query.
Feel free to call / get back in case of further clarifications.
Thanking You.
Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
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