• Service tax on society formation

I had purchased flat a year back in Mumbai and for which i am getting possession now. OC and society formation can be expected in a period of another 6 months to 1 year. 

Builder is collecting various charges like society formation, maintenance, legal, water connection and other charges on which he is imposing service tax and MVAT.

Request you to suggest whether service tax can be levied on these.
Asked 9 years ago in Service Tax

Yes he can collect service tax as these services form part of the broader definition of construction and allied activities.

Swapnil Patil
CA, Navi Mumbai
30 Answers
4 Consultations

The service provided by the builder are taxable services . It is not covered either in the negative list as per the act or the exempted list ( 25/2012) . Thus the builder may charge the service tax .

Prakash Sinha
CA, New Delhi Area, India
120 Answers
20 Consultations

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