Ref: Circular No. 108/02/2009/ST

What is the procedure to claim the Service Tax already paid during 2006 & 2007 under Section 65(105)(zzzh) , as there is a rule for claiming refund, only before 1 year from the payment of tax ? Builders were served notice to pay the service tax in the year 2005 by the Service Tax Dept.,
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  • As I understand it, service tax is collected from builder/developer. So refund will only be made to the builder. Service tax is collected at zonal commissionerate.

    You can try to figure out first whether your builder did indeed pay the tax in said time and then later also can try to find out whether any refund has been made to him by filing RTI to CPIO

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    India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people, a consultancy firm has said. “With India back on a high growth trajectory, demand for commercial and residential space is likely to witness an upward trend,” consultancy firm Ernst and Young said in a report.
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    He said the country’s macro-economic fundamentals were in great shape and it was poised to reap huge benefits of growth. “India needs to fix the institutions to attract more private investments, including foreign investments,” he said. Comparing the investment climates in India and China, Hodcroft said: “While it is easy for investors to get into China, it is extremely difficult to get out. In contrast, it took time for foreign companies to enter India, but exiting is comparatively much easier.” He noted that India was lower ranked in areas that were easy to fix.
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