MCHI Raigad Unit filed writ petition in HC against Levy of service Tax

Raigad: MCHI Raigad has filed a Witt Petition which has been admitted in Bombay High Court against Levy of Service Tax on Housing Property by Govt. of India. Service Tax has been levied on sale of flats, Shops and showrooms by builders from 1st April 2011 onwards.
According to the new law enacted by the Union Government, all flat buyers will have to pay an additional 2.58% Service Tax on purchase of new flats. This has immensely increased the budget of flat buyers. Rajesh Prajapati- President of MCHI- Raigad Unit informed that this is the first instance when any Builders’ Association in Navi Mumbai has approached the court of law for any matter. MCHI Raigad has pleaded that in the interim period till we received a judgment, no coercive action be taken by the Service Tax authorities against their members & that they be allowed to collect Service Tax directly from their customers in the name of Bombay High Court & Deposit it therein. In case of Judgment coming in favor of Builders the buyers will get the Service Tax amount directly from the High court without any further trouble. The interim Judgment is expected in the next few months.