Related to service tax on flat
Pratit Agrawal
(Querist) 11 January 2014
This query is : Resolved
I booked my flat in march 2013 and I did registration in july 2013 with full finished, (On full amount)but my builder dont have completion certificate yet. and now he is asking me to pay service tax seperatly, it is shock for me. I did finished(on full value and not semi finished) registration.Builder's sales manager only asked me to do finished registration.
please advise what should i do now, along with me many more people are there in my boat.
I feel that, to get completion certificate only now builder is asking money from us.
Kindly help.
Thanks and regards,
Pratit
Ms.Nirmala P.Rao
(Expert) 12 January 2014
It all depends on the Building Contract. However, if your Building Contract you entered with the Builder provides that "YOUR BUILDER HAS A RIGHT TO WITHHOLD THE issue of occupancy Certificate/completion certificate etc to you- despite your payment of the entire sale price, except your service tax to him- you'd be accordingly bound by the terms of such contract and also as per Building Laws and Service Tax law and rules made thereunder as they stand now..Hence, check your
Building Contract and if it provides that you are liable to pay your service tax along with the entire sale price to the builder in advance before the builder's legal obligation TO ISSUE YOUR OCCUPANCY CERTIFICATE ARISES.
Rajendra K Goyal
(Expert) 12 January 2014
Repeated query:
http://www.lawyersclubindia.com/experts/Related-to-service-tax-on-flat--446866.asp#.UtKgBrSLq_I
krishna mohan
(Expert) 13 January 2014
You check the contract for your liability on Service Tax. If it is silent consult a lawyer. As it is a revenue to Govt. you or the builder need to pay as it is falling within the service tax net. Also whole value do not attract ST and max. of 40% of flat value will fall under ST liability.
R.V.RAO
(Expert) 06 February 2014
flats sold after obtaining completion cert. by builder will not attract serv.tax.the reason is there is only sale but no serv.component.
in your case regn.of flat (SALE DEED) is cOmplete earlier to obtaining completion cert. by builder.
so you attract serv.tax liability.
however there is silver lining for you vide serv.tax notification no 26/12 wef 01/7/12,where by there is an abatement of 75% on value liable for serv tax.in other words,yo are liable to pay serv.tax @12.36% on 25% of value of your sale deed price of the property(flat).
further since builders take input tax credit for capital goods etc..,a frther 5% abatement is pssible if all the affected persons like you in your apartment complex can negotiate with builder.
an example is given below.
if your sale deed(regd.) value of your flat is Rs.30 lakhs ,you are liable to pay serv.tax( @12.36% on Rs6 lakhs )
of Rs 74160/- only
Guest
(Expert) 10 December 2014
Well advised
Anirudh
(Expert) 10 December 2014
WHAT A PITY.
ON TAX MATTERS THIS FELLOW USED TO SAY CONSULT CA CLUB ETC.,
NOW HE PRETENDS AS THOUGH HE IS A TAX EXPERT AND GOES TO EXTENT OF CERTIFYING OTHERS ADVICE!
NOW FROM NO WHERE, HE HAS ACCESSED A 10 MONTH OLD QUERY AND ENDORSES THE REPLY PROVIDED BY OTHER EXPERTS.
This fellow cannot even be a last person one can consult for any advice.
This fellow is good for nothing. Many a times he gives advices which are not supported by law.
TAKE THIS FELLOWS FALSITY IN HIS PROFILE. THIS FELLOW ATTACHES MORE IMPORTANCE TO THE PROFILE, WHILE HE IS FILLING UP TOTAL FALSE HOOD IN HIS PROFILE.
please visit the following link:
http://www.lawyersclubindia.com/lawyers_search/N-J-S-Rajkumar-alias-narasimha-254519.asp#.VIcRwmeHPFx
where he claims that he is practising from 2001, while as already indicated by me, he was enrolled only in the year 2012!!! CAN ANYBODY PRACTICE BEFORE ENROLMENT? IF ONE DOES SUCH A PRACTICE IS HE NOT FIT TO BE CALLED A "FRAUD"?
N.J.S.Rajkumar alias narasimha's Details
Listed Under
Business Law
Civil Law
Criminal Law
Practicing Since
2001
Specialization
SEBI and SEBI RELATED CASES
Court
Others
Address
54,PARASURAMA EASWARAN KOIL WEST MADA STREET,AYANAVARAM,CHENNAI 600023
Other Details
rajkumar_wins@rediffmail.com 9444036927
Therefore, before taking advice, the querist should be too careful
