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VORA (Business Development)     21 September 2011

Service tax on construction

1) THE CENTRAL SERVICE TAX ON UNDER CONSTRUCTION PROPERTY IS BEING RECOVERED BY BUILDERS FROM CUSTOMERS. ALSO THE VAT IN MHARASHTRA AT 1%. 

2) CAN THE BUILDER LEVY THESE TAXES FROM CUSTOMERS WHO HAVE BOOKED THEIR FLATS ON FLOORS FOR WHICH HE HAS NOT RECEIVED THE LEGAL CLEARANCES LIKE COMMENCEMENT CERTIFICATE AND THE APPROVED PLAN?

3) TILL THE LEGAL CLEARANCES FOR THE FLOOR YOU BOOKED A FLAT ARE PROVIDED BY BUILDER THE FLAT YOU BOOKED DOES NOT EXIST LOGICALLY. 

4) THE BUILDER OBVIOUSLY WILL NOT PAY THE LEVIES HE COLLECTS FROM YOU FOR SUCH FLATS TILL HE IS GIVEN ALL CLEARANCES FROM THE GOVT. PL SOME COMMENT ON THIS ISSUE.....



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