Builder asking 18% interest on service tax
Rohit Kolwalkar
(Querist) 06 October 2013
This query is : Resolved
Hi All,
During possession my builder is asking for Interest @ 18% on Service Tax payment.
I had issued him cheques for service tax and also have receipts for the same. Builders version is that the cheques were never deposited (which is true as the cheque amount never got deducted from my bank) and neither was service tax paid because of the case going on between builders & govt which builders lost.
As the builder had made late payment of service tax he is trying to recover the same from the flat owners during possession.
Please can you suggest if I am liable to pay the interest?
ajay sethi
(Expert) 06 October 2013
YOU HAD MADE PAYMENTS OF SERVICE TAX ON TIME . IT IS BUILDER FAULT IF HE DID NOT ENCASH THE CHEQUE . YOU ARE NOT LIABLE TO PAY HIM INTEREST
Rajendra K Goyal
(Expert) 06 October 2013
Well advised by the expert ajay sethi ji, if any demand is raised, send him legal notice. Since the cheques of service tax were not debited from your account, you can issue new cheque (for service tax and not interest) if the previous cheques are returned.
Raj Kumar Makkad
(Expert) 06 October 2013
You cannot be charged such huge interest without fault of you so go to consumer fora against the builder.
