Service tax on property under construction

[M. R. Nadkarni]

Bombay High Court has issued stay order on the subject. What are the duties and responsibilities of the builder with respect to payment of service tax collected.

AI Summary

Stay Order on Builder Service Tax Obligations: Clarification Needed for Non-Applicants Seeking Benefits A discussion on the service tax obligations of builders for properties under construction highlights a Bombay High Court stay order on the matter. A participant seeks clarity on the builder's responsibilities regarding service tax payment. A response suggests that the stay order applies to the specific case's applicant, and others wishing to benefit must petition the court. The stay is not a final decision, and caution is advised, as recovering service tax from clients could be challenging if the final ruling is unfavorable to the assessee. Decisions are determined on a case-by-case basis.