Hi,

I hope this post finds you in the best of health and spirits.

My name is Jayanth Ganapathy and I am the owner of a flat in Chennai. I am writing in to give you a detailed background on what has transpired over the last 6 or so months.

Some time in February 2010, I had visited a construction site and was interested to proceed with buying a flat. I was ably guided by the company employees to seal the deal. The square foot price I finalised for this apartment was INR 7600/- and all the dues with respect to this transaction were paid on or before 15th March 2010, the date on which the registration was executed.

On the 3rd May 2010, I received an email from the builder indicating, much to my surprise, that the balance due against my apartment was INR 3,53,918/- (service tax).

On that email dated 3rd May 2010, was the first time ever the topic of Service Tax was broached. I strongly believe that the builder must have spoken to me about the existence such a provision at a time when I was contemplating to buy the flat. We cannot work on assumptions when the transaction amount runs into approximately INR 1.5 crores. Additionally, I was never put on notice at any point of time before completion of registration or before that such a provision is subject to debate and lack complete clarity.

Additionally, over the last three months, I have been sending in numerous emails regarding this issue. Till date there has not been a single self initiated communication from the builder's end regarding this and they acknowledge this fact.

I am writing in seek your opinion if indeed service tax would be applicable on the purchase I made. Since the notification was released in July 2010, would it have a retrospective effect? Appreciate all and any pointers in this subject. Thanks a lot for your time. Look forward to your response.

Best Regards,
Jayanth Ganapathy