Service Tax

[viju Ayyer]

I recently paid a booking amount for a Row house in pune, In the agreement the builder is trying to pass on the service tax on me. I have read somewhere that by law the builder is responsible to pay the service tax . I would be obliged if you can advise me the right law and if i can ask the builder to eraseor ammend the clause.

i look forward for a early response.

Thanks

Viju

[maneel.com]

Service tax is a government imposed tax on certain services that you buy, the rate of service tax differs from service to service but what you have to pay attention to is when you go and get a hair cut in a saloon if you notice the bill it contains a loading of 12.36% service tax, if you look at your mobile bill there is a service tax over and above the billed amount, Now we have to understand that a tax is payable to the government and the company is accountable to government to collect it and not pay it, if they do not collect it they are liable to pay it.

Hope this serves your need!!

[king2163]

It seems like a certain way to save taxes and increasingly, home buyers are opting for it. They buy two adjacent flats and combine them. People who opt for three or four bedroom units, usually use this method. Brokers say that they can save taxes as they get two sales agreements in the names of two members of a family. Now, they can opt for two home loans to claim tax benefits.