TaxTMI 
TaxTMI 
2018 (4) TMI 1339
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....e course of audit, it was found that in addition to sale price of individual dwelling unit, they had charged and received certain amounts from unit holders as maintenance charges of the building under construction till possession of it is handed over to Society. The case of the department is that as per para 6 of Circular No.B1/6/2005-TRU dated 27.6.2005 w.e.f. 16.6.2005, maintenance and management of immovable property (in this case the building under construction till possession is handed over to Society) are provided as per the terms and conditions of the agreement to sale of the property between the dwelling owner and service provider. These activities fall under the ambit of Service Tax and liable for service tax w.e.f. 16.6.2005. Acco....
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....in the Tribunal has given the following observation:- "6. At the outset, we note that Circular and case laws quoted are not relevant to the present issue as services and situations context discussed are totally different. We find that as per the agreement submitted by the appellants, certain amounts were collected from the buyers of the flats as one time deposit on account of the following services :- (a) Towards maintenance and repairs of common areas and facilities. (b) Wages of watchmen, sweepers etc. (c) Insurance. (d) Revenue assessment. (e) All other taxes, levies, charges and Cess. (f) Electricity and water charges and deposits in respect of common electrical and water pumps and other installations. (g) Expens....
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.... they were given and shall disburse the moneys for those purposes and shall on demand in writing by an officer appointed....... SECTION 06 : RESPONSIBILITY FOR PAYMENT OF OUTGOINGS TILL PROPERTY IS TRANSFERRED A promoter shall, while he is in possession and where he collects from persons who have taken over flats or are to take over flats sums for the payment of outgoings ever thereafter, pay all outgoings (including ground rent, municipal or other local taxes, taxes on income, water charges, electricity charges, revenue assessment, interest on any mortgage or other encumbrances, if any), until he transfers the property to the persons taking over the flats, or to the organisation of any such persons. Where any promoter fails to pay al....
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....epair service as they are only paying on behalf of various buyers of flats to various authorities (Municipal Corporation, Revenue authorities etc.) and various service providers (such as security agency, cleaning service providers etc.) and they are not charging anything on their own. The payments are made cost on cost basis and the same is debited from the deposit account. They act only as trustee or as pure agent. When the cooperative society is formed even the deposit account is shifted to Flat Owner's Cooperative Society. We also note that this is a statutory obligation on the appellants in terms of Maharashtra Ownership Flats (Regulation of the Promotion of Construction, Sale, Management and Transfer) Act, 1963. 7. Under these circu....