Inconsumercomplaints.com » Miscellaneous » Review / complaint: Babukhan Properties / Central Excise & Service Tax department - Uncalled Service Tax charged on Flat purchase | News #111109

Babukhan Properties / Central Excise & Service Tax department
Uncalled Service Tax charged on Flat purchase

Dear Sir,

I have purchased a flat in Secunderabad last year in the month of July. The builder has charged me 12.26% service tax. But the recent circular No.96/7-ST dated 23.08.2007 and F.NO.354/28-TRU of Department of Revenue, ministry of Finance, Govt., of India clearly states that only the contractor in his capacity as a taxable service provider can charge service tax to the builder/promoter, but the builder cannot charge service tax to the end buyer.

This circular is avilable at:

http://www.servicetax.gov.in/circular/st-circular07/st_circ_96-2k7.htm

and refer clarification for Ref Code #079.01/23.08.07

Moreover the builder has deposited the service tax amount to the 'Central Excise & Service Tax' department only on 16-01, whereas the same was collected from me by the builder in July itself. He had been enjoying the interest on the money for six long months.

On the other hand the Central Excise & Service Tax department has collected/received the service tax from the builder even though as per the above circular, the same is not applicable. The builder, considering our pressure has deposited the service tax under the clause of 'Payment in Protest' to the department.

But neither the builder nor the Central Excise & Service Tax department is refunding the uncalled tax amount charged wrongly.

Request you to help me get my money refunded.

Thanks/Regards

Pravin Kumar Bothra

Flat No 403, Aneesh Towers,

6-1-22 Walker Town, Padmaraonagar

Secunderabad

91 9848560303

[email protected]



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