Decision by Bombay HC Relieves property buyers in the city

By granting the interim stay on Service Tax levied by the Union Government on buildings under construction, the bench of Justice S.J. Kathawala and Justice V.C. Daga of Bombay High Court has given relief to the property buyers and the real estate developers too.

The service tax was added w.e.f. July 1st,2010. Acoordingly the flat buyers were required to pay additional almost 2.5 % of the total value of the premises.

With the efforts of MCHI, who filed the petition on the issue on July 23rd. the decision of stay was taken. The judges ruled that no coercive steps shall be taken against the developers for recovery of service tax in relation to the provisions in question. However they have clarified that the assessment may proceed according to the law.

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2 thoughts on “Decision by Bombay HC Relieves property buyers in the city

  1. My builder is asking for the service tax. As per the schedule, Possession of the flat is in March 2011 and builder is saying if HC decesion would be pending by that time then they will take full service tax amount along with interest from me. Please suggest.

  2. I purchased a flat in Virar in 2010. My agreement is of March 2010. Now my builder send me message on my mobile to pay 1% service tax and 2.5% vat. of the agreement value. should I pay this taxes to the builder. please guide me

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