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Purchased a plot now builder is asking to pay service tax


04-Jun-2023 (In Tax Law)
Sir, I have purchased a plot and then made agreement for construction on it. Location Bhopal rs.2950000. Now builder is demanding service tax rs.1.12 lakh. Please guide with proper rules that service tax will applicable or not. Because I have read in service tax article that service tax is not applicable on construction of single unit duplex or bungalow.
Answers (2)

Answer #1
961 votes
Please mention the date of agreement for the construction of building and the carpet area. Here you mention the word service tax (applicable upto 30/06/2017) after that GST is applicable. Before GST Rate of Service tax as on 30/06/2017 was 3.75% ( 75% Abatement) on Residential Building having carpet area less than 2000 Sq. Feet and sales price less than Rs. 1 Crore.
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Answer #2
689 votes
Have you purchased the land separately earlier. Kindly let me know the date of agreement in which it was entered and the amount of consideration and what is the carpet area of your residence. And whether Rs. 29,50,000/- is the cost of land or the consideration which is to be paid to builder.
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