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Author :
narender
Posted On 23 May 2012 at 07:55
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i have purchase a flat in bhiwadi. my builder charged service tax on parinng space @12.36%. can any body tell me about the apllicability of service tax on car parking space.
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Expert :
Nadeem Qureshi 9953809956
Posted On 23 May 2012 at 10:30
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Dear Querist
you can search you answer through below link
http://www.indianrealestateforum.com/noida/t-service-tax-16601-page2.html
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Expert :
sankar narayanan
Posted On 23 May 2012 at 11:27
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what is in the agreement
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Author :
narender
Posted On 23 May 2012 at 12:23
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service tax not mentioned in agreement it's as per law. But As per Law Relevant para is as under:-
“8.1 Construction of commercial or industrial structures was brought under service tax net in 2004 while construction of residential complexes became a taxable service in 2005. The scope of the existing services includes construction, completion and finishing, repairs, alterations, renovation or restoration of complexes. It has been reported that in addition to these activities, the builders of residential or commercial complexes provide other facilities and charge separately for them and these charges do not form part of the taxable value for charging tax on construction. These facilities include,-
(a) prime/preferential location charges for allotting a flat/commercial space according to the choice of the buyer (i.e. Direction- sea facing, park facing, corner flat; Floor- first floor, top floor, Vastu- having the bed room in a particular direction; Number- lucky numbers);
(b) internal or external development charges which are collected for developing/maintaining parks, laying of sewerage and water pipelines, providing access roads and common lighting etc;
(c) fire-fighting installation charges; and
(d) power back up charges etc.
8.2 Since these charges are in the nature of service provided by the builder to the buyer of the property over and above the construction service, such charges are being brought under the new service. Charges for providing parking space have been specifically excluded from the scope of this service. Development charges, to the extent they are paid to State Government or local bodies, will be would be excluded from the taxable value levy. Further, any service provided by Resident Welfare Associations or Cooperative Group Housing Societies consisting of residents/owners as their members would not be taxable under this service.”
Section 65(105)(zzzzu) talked for the services which are common in nature and builder has built up the price considering the charges of the common facilities on super area basis . We are additionally paying for the allotment of parking space as it is not common area and specifically allotted to the undersigned.
Moreover even if it is falling under the taxable service of “construction of complex” , the rate of tax under this category of service is 3.09% not 12.36%.
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Expert :
ajay sethi
Posted On 23 May 2012 at 14:46
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builder cannot sell parking slots . if he is not authorised to sell slots where is question of payment of service tax
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Expert :
Suhail A.Siddiqui
Posted On 23 May 2012 at 21:14
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In case builder is charging rent/fee for parking of car upto Rs. 10 lakhs in a year he is liable for service tax for providing such services .there is no wrong in charging 12.36% S.tax and deposit as indirect/ service tax.
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