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Service tax to builder
by Santosh Kulkarni on Jan 10, 2007 03:38 PM

I brought a commercial property in 2005 for
which the agreement has been done in Aug 2005.
I had to pay one time maintainance cost and it
clearly mentioned in the agreement.
The agreement doesn't speak of any Service tax
on maintainance cost.
Now, my property is due for possession in Jan
2007 and now the builder is asking for Service
tax on maintainance cost. He is quoting that
govt have now changed the rule and I have to pay
Service tax.
Is the builder is correct in demanding Service
tax ? Do I have to pay the service tax even
though it is not mentioned in the agreement ?
~Santosh

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The above message is part of the Discussion Board:
Tax benefit on HRA & home loan?