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Thread: Service Tax & VAt on Under construction Flat

  1. #1
    rakesh_rthakur is offline Junior Member
    Join Date
    Mar 2011
    Posts
    1

    Post Service Tax & VAt on Under construction Flat

    Name:  Service-Tax.jpg
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    Dear All,

    This is Rakesh Thakur, I am residing in Kalyan and booked a flat in Tawripada, Near Filter Plant, Kalyan. Apartment has been completed but yet to receive the Completion certificate from the Local Authority.

    Few days back I had recd a letter from My Builder stating that the Service Tax and VAT is now applicable on purchase of Under construction flats and need to deposit the same asap. As per him the High Court had instructed all the Builders to collect the 2.575 % Service Tax and 1% VAT from the end user (buyer) and deposit the same to them. The payment is scheduled to High court every month on 21st so he is insisting to deposit the same before this 21st otherwise penalty would be levied on the total taxes.

    As per my knowledge the Stay put by HC is still not been lifted, I proposed him that I will give an indemnity bond so that you will be out from this responsibility, but he says no to it.

    I request you to please confirm is really the 2.575 % Service tax and the 1% VAT is to be paid on the agreement value of the property taken by me.

    Please revert.
    Last edited by rakesh_rthakur; 03-11-2011 at 09:31 AM. Reason: Common Man

  2. #2
    Unregistered Guest

    Default Please resolve this issue..

    Quote Originally Posted by rakesh_rthakur View Post
    Dear All,

    This is Rakesh Thakur, I am residing in Kalyan and booked a flat in Tawripada, Near Filter Plant, Kalyan. Apartment has been completed but yet to receive the Completion certificate from the Local Authority.

    Few days back I had recd a letter from My Builder stating that the Service Tax and VAT is now applicable on purchase of Under construction flats and need to deposit the same asap. As per him the High Court had instructed all the Builders to collect the 2.575 % Service Tax and 1% VAT from the end user (buyer) and deposit the same to them. The payment is scheduled to High court every month on 21st so he is insisting to deposit the same before this 21st otherwise penalty would be levied on the total taxes.

    As per my knowledge the Stay put by HC is still not been lifted, I proposed him that I will give an indemnity bond so that you will be out from this responsibility, but he says no to it.

    I request you to please confirm is really the 2.575 % Service tax and the 1% VAT is to be paid on the agreement value of the property taken by me.

    Please revert.


    Hello
    I am from Pune.
    Please resolve this issue as it is creating very confusion amongst buyers ,whether pay or not pay.
    Builders are collecting Service Tax shamelessly from the buyers without giving any receipt to them.

  3. #3
    san45bhabad Guest

    Unhappy Service Tax & VAt on Under construction Flat

    Hello,

    I am from Kalyan. I has booked 1BHK flat in kalyan and yesterday i have received 1 letter from builder about VAT/ST and it is too much to pay. According to this amount flat cost will automatically reaches to high.

    Kindly revert to this issue ASAP.

    Regards,
    Santosh Bhabad

  4. #4
    Unregistered Guest

    Default Service Tax of 2.575% implemented for under construction flat

    Hi,

    Should i need to pay the service tax of 2.575% for the payment done post 1-Jul-2010. I signed the Sales Agreement with Builders in Dec 2009 and Dec 2010 was possession(But still to receive possession).

    Regards,
    Amol

  5. #5
    Unregistered Guest

    Default Service Tax & VAt on Under construction Flat

    Please resolve this issue as it is creating a chaos amongst buyers ,whether pay or not pay.
    Builders are collecting Service Tax shamelessly from the buyers without giving any receipt to them

  6. #6
    Unregistered Guest

    Default Service Tax for under construction flat on builder or buyers?

    Hi

    I have booked a flat in Kolkata in jan 2010.The total cost of flat including the garage is around 23 lakhs.
    Probably the CC has been issued in month of August.
    Now immediate before the registration, the developer/promoter has asked me to pay the service tax of INR 80000/- calculated based on the amount of sale of the said flat.

    I have a little doubt on whether this service tax is supposed to be paid by me or it is entirely by the developer/promoter.

    Some sources say this tax has to be paid by the developer/promoter only and the customer or the buyer is not liable to pay this kind of service tax.

    Please, reply me. I am waiting for your response.

    Thanks
    Dayamay

  7. #7
    Unregistered Guest

    Default Service Tax on under-construction property

    Hello,

    I am from Pune (Maharashtra). My builder is charging me service tax on following amounts:

    Rs. 34,75,200 (total sqft * rate per sqft) - cost of property

    Rs. 10,000 - charges and expenses for formation of association of apartment owners.

    Rs. 75,000 - for MSECDL (electricity) meter deposit, transformer charges, common meter installation charges.

    Rs. 65,000 - Towards maintenance charges of society for 3 years after possession of said flat.

    My queries:

    1. According to my knowledge, service tax is applicable only to the construction cost. Am I liable to pay service tax on 1.5 Lakhs (10,000+75,000+65,000)?

    2. Is service tax applicable on amount paid before July 2010? My agreement was done on 14th July 2010 but I paid the booking amount of 5.5 Lakhs in June 2010.

    3. Is VAT applicable on construction cost too?

    Please help.

    Thanks in advance,

    Anil

  8. #8
    sms1978 is offline Junior Member
    Join Date
    Nov 2011
    Posts
    1

    Angry Builder Imposing Govt Levy on Flat Purchased 2010

    Dear Respected Sir,
    Can you please help me in providing your valuable inputs.
    This is regarding the extra charges being imposed by the builder during registration.
    I have purchased a FLAT and agreement was done in Jan 2010 with Possesion Date of Dec 2010.
    My agreement says only to pay 49,11,500/ + (Flat Charges + Maintenance Charges) and 2,00,000/-( Registration+Stamp
    Duty+Legal Charges) . Now I am asking for registration of the flat and the builder is asking to pay extra Govt. Levies@
    6.5% of 49,11,500 (i.e 3,19,248/-) which is not a part of my agreement. Also he is charging me the late payment
    charges of 2,06,628/- which is because disbursement got delayed from BANK. The builder did not send any
    demand letter to the bank to disburse the amount and there was no progress in the construction.The disbursement was on
    date basis and not on SLAB completion. The builder planned the dates in agreement in such a way that he knew the Bank
    processing would delay in disbursing the payment and he is now charging me...Till date he didnt turned up
    saying i need to do the late payment charges but now he is asking me.
    My Agreement was done - Jan, 2010
    Actual Flat Possession Date according to agreement is - Dec,2010 (But Still Not Given)
    Current Situation - Not yet giving Possession Date and demanding more money
    Amount Disbursed - All except 2 L for registration.
    Answer my questions inline to my commments please...
    Answer my questions inline to my commments please...
    Please let me know
    1. What are 6.5% charges? Builder says the 6.5% charges are Govt Levi charges it seems and this charges are separate
    from the Registration+Stamp Duty+Legal Charges. This figure is NOT at all there in my agreement
    2. Do i need to pay VAT and Service Tax? as i did my agreement in Jan 2010? if so what is the Percentage?
    3. Also should I pay delay charges as there is a delay from builder side as he is not giving possession till date? I
    have a clause saying builder will pay Rs. 5/sq feet if delayed after Dec 2010. But there isnt any End day mentioned in
    agreement till what time the delay would be and he hasnt payed anything to me till date.
    4. How much time it would take me to get this legally resolved in karnataka? I heard there are lots of cases pending to
    be resolved?
    5. He says you happily go to the consumer court there are 12 Lakhs cases pending and it will take years to solve this.

    6. He also says that they have good contacts at builder level...My question is INDIA so corrutped..come on...please help
    me in getting the right solution..
    7. I cant even concentrate in my personal life as this is the only
    thig i have made in my life and i am not getting this.
    8. Does builder has right to CANCEL agreement?
    9. Should i go to Lokayukta?will Lokayutka help me OR Consumer Court Help me?
    10. He is not Even responding to emails when i Asked about the 6.5% Govt levis charges, as he keeps quiet..
    Please anyone can share me the mail id such that i can send my
    documents and you can verify and provide me the suggestion...
    Answer my questions inline to my commments please...

  9. #9
    ashish.sarad is offline Junior Member
    Join Date
    Dec 2011
    Posts
    1

    Default

    Please help me in the Same...

    We have book the flat and did registration in May 2010, now building is about to complition and Builder is asking to pay the VAT and Service tax amount..

    Could you please help me, Do I really need to pay the amount for VAT and Service TAX

  10. #10
    rriti is offline Junior Member
    Join Date
    Dec 2011
    Posts
    1

    Unhappy

    Dear All,

    This is Rakesh , I am residing in Kalyan and booked a flat in Tawripada, Near Filter Plant, Kalyan. Apartment has been completed but yet to receive the Completion certificate from the Local Authority.

    Few days back I had recd a letter from My Builder stating that the Service Tax and VAT is now applicable on purchase of Under construction flats and need to deposit the same asap. As per him the High Court had instructed all the Builders to collect the 2.575 % Service Tax and 1% VAT from the end user (buyer) and deposit the same to them. The payment is scheduled to High court every month on 21st so he is insisting to deposit the same before this 21st otherwise penalty would be levied on the total taxes.

    As per my knowledge the Stay put by HC is still not been lifted, I proposed him that I will give an indemnity bond so that you will be out from this responsibility, but he says no to it.

    I request you to please confirm is really the 2.575 % Service tax and the 1% VAT is to be paid on the agreement value of the property taken by me.

    Please revert.

  11. #11
    alpeshkj is offline Junior Member
    Join Date
    Jan 2012
    Posts
    1

    Default is service tax applicable now ?

    Is service tax applicable now for purchase of new property which is under construction. if yes it is effective from which date an dhow is it calculated?

  12. #12
    sendtosachingupte is offline Junior Member
    Join Date
    Jan 2012
    Posts
    1

    Default

    Dear All,

    This is Sachin, I am residing in Kharghar and booked a flat in Taloja. [COLOR=#009900 !important]Apartment[/COLOR] not been completely build.

    Few days back I had recd a phone call from My Builder stating that the Service Tax and VAT is now applicable on purchase of Under construction flats and need to deposit the same asap. As per him the High Court had instructed all the Builders to collect the 2.575 % Service Tax and 1% VAT from the end user (buyer) and deposit the same to them. The payment is scheduled to High court on 31st Dec 2012 so he is insisting to deposit the same before this 31st otherwise penalty would be levied on the total taxes.

    As per my knowledge the Stay put by HC is still not been lifted, I proposed him that I will give an indemnity bond so that you will be out from this responsibility, but he says no to it.

    I request you to please confirm is really the 2.575 % Service tax and the 1% VAT is to be paid on the agreement value of the property taken by me.

    Please revert.

  13. #13
    vishal D jadhav is offline Junior Member
    Join Date
    Apr 2012
    Posts
    1

    Question Service tax & vat

    dear sir,

    i ve booked 2bhk a under construction flat kopra kharghar, navi mumbai. I ve entered into agreement with builder 30/3/2010. Builder has received the completion certificate this dec 2011. Builder promised to complete the work by dec 2010. But delayed by a year. When it is the time for possession now, he is demanding service tax and vat now. i am i liable to pay the tax? If yes for what portion of my payment. pl clarify

  14. #14
    asha sushamt Guest

    Post vat and service tax

    I purchased a land from a developer of villa and constructed a villa as per the devlopers design. The land is registered in my name and I have availed loan from the bank by mortgating the land. The develepor is the builder and is doing the construction. Is VAT and ST both applicable.Now for handing over the building the builder is demanding both.
    Asha

  15. #15
    Unregistered Guest

    Default Service Tax on property

    Sir,

    My Flat cost is 20,00,000. I have paid Rs. 500000 before 1 July 2010 and Agreement registered on 30th June 2010. So please tell me how much Service Tax I have to Pay to Builder.

    Regards
    Prasad

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