Servive tax/ vat application
jyoti
(Querist) 03 November 2011
This query is : Resolved
My greetings to all
Dear Sir,
A lot has already been said about Service tax and VAT applicable to Underconstrcution property but still I see a lot of different opinions stated.Thats why I am writing this question
I have booked and Registered a flat in Navi-Mumbai on 28 May 2010, which was certified as 80% complete by the builders architect at the time of booking. Initial payment of Rs. 50000 made on 20 April 2010 and then Rs. 500000(five lakhs )made in 24 June 2010. (( Thus Registration and payment of Rs. 550000 made before 1 July 2010 which is the date of Service tax applicability on underconstruction property))
Balance payment of Rs. 1470000 made on 5 August 2011 and Rs. 112000 made on 19 April 2011.Balance only 1 lakh remaining to be paid by my bank, which will be done only after the building gets an OC.
Now my builder has now issued me a letter stating that I need to pay Rs. 52000 as Service tax and Rs. 31000 as VAT. He has asked also asked to pay the balance amount of Rs. 1 lakhs from my bank as the project is complete as OC is received for the building.
My questions-
1) Will I have to pay the taxes as my property was registered before 1 July 2010 and 80% was certified as complete at that time.
2)How will the service tax and VAT claculated in my instance? as I had already paid Rs. 550000 before 1 july,2010.
3)Can the builder collect servive tax / VAT as I heard that there is a stay on servive tax from high court.
3) Also I found recently that my builder has sold me and which is mentioned in my sale agreement as ''other saleable are'' 28 sq ft behind the toilet which has no access to it and is fully covered by walls. Where should I approach to complain against the builder for selling non-accessable area??
Jyoti Sharma
ajay sethi
(Expert) 03 November 2011
you had raised this query earlier wherein the experts had advised you to take posession of flat . building has already received occupation certificate . pay the balance amount .
prabhakar singh
(Expert) 03 November 2011
NO REPEAT N NO NEW THREAD PLEASE.
ITS A GENTLE MEN BUSINESS.IS'NT IT LOOKS SO TO YOU????
jyoti
(Querist) 03 November 2011
Dear Sir,
This is the first time I am asking a question on service tax applicability/VAT.
Not sure how it was conferred that I had already asked this question.
Please provide valuable advice.
Thanks in advance
Jyoti
prabhakar singh
(Expert) 04 November 2011
If so is the condition Mr.Sethi have addressed a same question from some one else.
He is right person to speak authoritatively as he is from mumbai and your question relates to Maharashtra.
Hence you may send him a pm in this regard.
you can also visit:
http://www.dnaindia.com/mumbai/report_realty-gets-dearer-in-mumbai-with-1pct-vat_1363503
