Service tax of property regarding
Querist :
Anonymous
(Querist) 13 August 2017
This query is : Resolved
Sir,
I booked a 3BHK flat which was almost ready to move flat in chennai in Feb 2017 with service tax charged 3.75%,
Registration of property has been done in April 2017.
My builder asking an increased service tax of 4.5% in august 2017, few days before handing over. Is it appropriate to claim such increased tax as I signed cost sheet for 3.75% when I booked..
Also, there is an high court n Supreme Court judgement in 2016 saying service tax should not include land value of property.
Please throw some light in this issue, so that I may proceed further.
Regards
Dr. Vinoth
Tamil Nadu
drchellaiyan@mail.com
9999727167/9944894554
P. Venu
(Expert) 13 August 2017
The increased incidence of Service Tax is because of the new regime of GST. As such the builder is justified in seeking enhanced amount towards tax.
Rajendra K Goyal
(Expert) 13 August 2017
No reply to query from an author who is anonymous.
You can post the query in fresh thread with your identity and material facts.
Querist :
Anonymous
(Querist) 13 August 2017
Thanks for the reply sir.But, the builder said this is not due to GST as flat will be handed over in a period of week (by 3rd week of august 2017). The builder failed to inform at the time of project booking during February 2017 regarding this 4.5% ST and signed the agreement for 3.75%ST. Registration is also done. Only 10% of total flat cost is pending to be paid to builder. Also the ST is charged for whole project base price including land value. Please clarify.
Dr J C Vashista
(Expert) 15 August 2017
Dr. Vinoth,
1. You should have mentioned your name as author, which is otherwise "anonymous" and the experts on this platform do not entertain such queriest.
2. GST is announced and applicable only after 01st July 2017 wherein you have already got the sale/conveyance deed registered and just waiting for physical possession of the flat, which do not attract new regime of taxation. Besides this, the government (state + union) GST registration of business houses/entities/companies/corporations commenced after its pronouncement i.e., w.e.f. May 2017 onwards whereas its rate/applicability is yet to be determined.
3. The builder is blackmailing you on the pretext of applicability of GST, which is not there in your case, make it clear to the builder. You can sue the builder on this account.
4. It would be better and appropriate to discuss with a local lawyer practicing taxation or a chartered accountant.
