Service Tax on residential properties

The service tax on residential flats is illogical and a typical case of tax legislation done without due diligence. A builder is selling his own manufactured product i.e. a residential (not commercial) building. so, it is obvious that the builder is promoting his own product (and not franchised by someone else) that can be seen physically, as a 'Seller' and not in the capacity as that of a 'professional' or 'consultant' to sell his own products.  In case a builder promotes/advertises his products in house and that generates some customer's footfalls then will that attract a service tax for Exhibition too?

This tax is as illogical as it can be. If one buys a ready flat from the builder or on resale, then there is no service tax. It then means that it is a product, not a service. However if one books a property before or during construction and makes progress based payments to the builder, it then becomes a service! The logic escapes me.

You are right. Service Tax should not be applied to the sale of Flats. As it is every product and service is already taxed.

Just because the Government has the authority to tax does not mean that each and every penny must be squeezed from us.

Please remember that earning a lot of money is NOT wrong. Without this incentive the industry will never progress. 

it is totally unjustifiable since all burden will be on customers and already high price of real estate will go further up