fakhruddin ali (admin) 07 February 2013

Hidden charges

dear members and experts,

I am facing a problem and needs your help. We booked a flat, which is still under construction. we had been told by the builder that we have to pay the total cost in divided installments.Before booking the falt we had three rounds of meetings with the builder, and they did not mention anything about SERVICE TAX. we booked the flat in december 2012, we also got the allotment letter after giving two cheques of 3.5 lakh, one cheque has been cleared and one is due on 15th of feb 2013. Now the builder is telling that we have to pay 3.9% of SERVICE TAX on each installments.

I want to know is it legal doing this. If no then what should i do now. Please reply and help me out.

bye

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2 Replies

Advocate Rohit (Advocate) 07 February 2013

Service Tax and vat is payable while booking under construction flat. Thus, your buider is right in claiming such amount from you. Service Tax is to be paid @ 3.09 % on the Agreement Value of the flat and VAT @ 1% of the Agreement Value of the Flat.

Ask the builder to give you proper receipt mentioneing his Service Tax and VAT regn. number.

Regards,

Advocate Rohit Dalmia

9324538481

Mumbai

fakhruddin ali (admin) 07 February 2013

DEAR SIR,

Thanx a lot for your reply, the builder has shown us the total amount, which inculded tax and parking fees, but now the problem is that, he is telling we will have to pay 3.9% on each installment. the total amount which we agreed to pay inculdes govt tax and vat.

now why he is asking for 3.9% on each installment