Can builder charge service tax on one time 2yrs advance maintenance charges
Santosh Kale
(Querist) 11 September 2016
This query is : Resolved
Dear Sir,
Our Builder has given possession of flat. But he demanded 2 yrs advance maintenance charges with service tax@15%. He has not provided OC & drinking water yet. He is providing borewell water & bisleri can.
Is it liable to pay ST on the said maintenance charges? and can I pay maint.charges immediately?
Pl advice me.
With Regards,
Santosh
Thane, Maharashtra.
Raj Kumar Makkad
(Expert) 11 September 2016
Neither builder can charge service tax on the mount of maintenance nor you can b forced to deposit the amount in advance, however, regular maintenance amount may be on the higher side. It shall be better to reconcile the accounts accordingly.
Raj Kumar Makkad
(Expert) 11 September 2016
As the completion qua water and Occupancy certificate is still pending on the part of builder, he even cannot offer for possession and if he is doing so then he is also liable to bear maintenance charges till the building is provided with the occupancy certificate.
Guest
(Expert) 11 September 2016
Hi Santosh Kale,
To pay or not to pay the maintenance charges immediately or at later date is the issue to be decided within the residents association. Any advice on the part of the experts may not be appropriate on that issue.
However, as and when you pay the maintenance charges, you will have to pay the service tax also, as based on that amount.
adv.bharat @ PUNE
(Expert) 11 September 2016
Santosh Kale u will be benefited by expert advice.
Ms.Usha Kapoor
(Expert) 12 September 2016
Dear Cl9ient,
Actually it is the builder that has to pay these Service3 Tax at 12.5% but as usual he is palming off those charges on the buyer.
Till you obtain occupancy certificate from the builder and also completion certificate from any of these authorities such as local Authority, i.e Municipal corporation o chartered Engineer, or Architect as per the amended rules you'll have to pay service Tax @12.5% and Maintenance charges for two years towards
Advance payment til Apartment owners Association is formed.IF YOU CONFRONT THE BUILDER THAT HE HAS TO PAY THE service tax AND ADVANCED MAINTENANCE CHARGES UNDER AMENDED RULES AND ISSUE OCCUPANCY CERTIFICATE ETC. let US SEE WHAT HE WOULD DO?
Santosh Kale
(Querist) 12 September 2016
Thank you to all of you.
Guest
(Expert) 14 September 2016
Please don't take part part issue in different thread . While ans. Whole problem should be at one place and proper analysis of whole case required . Problem takes place with client who only tell one part of case , situation becomes patient go to Dr get medicine , then same patients go to other Dr and get medicine then go to chemist and take separate medicine then use his personal brain mixing all various partial combination which eventually put next Dr in puzzle about real diagnosis
