How much service tax on 7th march 2012 flat registration - 2.575 % or 3.09%
Sachin
(Querist) 18 April 2013
This query is : Resolved
Dear Sir,
I had purchased flat in Pune and signed the agreement on 7 March 2012.
My Agreement cost is 3632700. I have given full disbursement to builder through ICICI bank loan.
Builder charged me VAT and service as below at the time of registration –
VAT – 40090 (more than 1% )
Service tax as 93543 (2.575 % )
I have given VAT and service tax cheque to builder on 7th March 2012 and its deposited builders account in March itself.
I would get possession on 25th April 2013.
Now builder is demanding service tax as 3.09% on Agreement cost which is around 1.12lakh. he is demanding 18k more.
Please help me, How much percentage service tax I need to pay for 7th march 2012 registration?
Your help would be very helpful to me.
With Best Regards,
Sachin
Sachin
(Querist) 19 April 2013
Can any expert comment on it?
Raj Kumar Makkad
(Expert) 20 April 2013
You need not more as you have already deposited properly to the builder within time. Obtain the copy of deposit of service tax and VAT by him in the treasury of State.
sharad
(Expert) 20 April 2013
Essentially, The rate difference is due to change in service tax rates wef 1st April'12 from 10.3% to 12.36%. As per Point of Taxation Rules 2011 Rule 3, the point of tax will be the date of invoice or date of payment which ever is earlier. Therefore,in my opinion, since you made full payment before the amendment date, builder should not charge you @ new rate. You may refer Rules 3 to 6 of the Point of Taxation Rules 2011.
Sachin
(Querist) 23 April 2013
Hello Sir,
I really thankful for Expert advice.
still builder is asking 12.36% (3.09% on agreement cost) service tax.
He is saying that its effective from Jully 2011.
Kindly advice me what to do?
Thanks,
Sachin
sharad
(Expert) 24 April 2013
Pls obtain Notification no to which they are referring. In our case pls show him the Notification No.2/2012 - Service Tax dt 17th March'12 which was effective 1st April'12.
Sachin
(Querist) 06 May 2013
Dear Sir,
I really thankful to lawyersclubindia and its expert team.
also I have consulted with CA and showed the notification to builder.
Now builder is not asking extra money which were illegal.
Thanks and Regards,
Sachin
