Can builder charge interest on non payment of service tax amount
anita
(Querist) 30 June 2013
This query is : Resolved
My question is can builder charge interest on non payment of service tax amount. and how much %.
Currently i have made all payment except the late payment interest charges but they r not giving me possession until i clear the interest charge on late payment.
Can they hold possession just for this reason?
Also the builder has already delayed possession by almost a year they r not paying me any interest for delay in possession :( but very prompt in asking me to pay interest charges that is also at the rate of 21%
Raj Kumar Makkad
(Expert) 30 June 2013
You can charge compensation for the late delievery of possession through consumer forum but you shall also have to pay interest on delayed payment of service tax as per income tax rates.
anita
(Querist) 30 June 2013
Ok Service tax is payable by builder even if i pay the interest on late payment to builder but how do i know whether he pays it to governement can i demand any confirmation or receipts from him?
Raj Kumar Makkad
(Expert) 30 June 2013
You have every right to demand the due receipt from him.
anita
(Querist) 30 June 2013
Dont you think goverenment is unfair of giving builders right to ask cutomer to pay whole service tax amount.
Builders are already making huge profits why cant government play a fair play and ask builder and customer to pay 50-50%.
instead of customer taking 100% burden.
Property prices are already high and with these additional taxes properties are going beyond reach of middle class people.
Can we question governement about there unfair practices and creating policies favourable to builders only.
Raj Kumar Makkad
(Expert) 01 July 2013
The policy maters can't be discussed here and moreover, the service tax is to be paid by ultimate user of service. There are separate tax liability over the builders and they have been assigned the duty to collect the service and VAT tax from the actual buyers of the properties from them and to deposit the same in the Govt. treasury.
