The budget 2010-11 has proposed to levy service tax on all sales of under-construction properties from July 1, 2010. The property buyers have to shell out an extra for payment made for purchase of property. Finance Bill 2010 has introduced eight new services to charge service tax. This includes Special services provided by a builder etc. to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges. There have been further amendments to the Finance Bill, 2010, which have been passed when the Bill became law. The following major changes have been made by the Finance Act 2010 for under construction property.
Amendment made by the Finance Act 2010
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- An Explanation is added to section 65(105)(zzq) and (zzzh) which deems construction of a new building and complex intended for sale, wholly or partly, by a builder to a person before, during or after grant of completion certificate by the competent authority to be services provided by the builder to the buyer/prospective buyer except in situations where entire amount is paid by the buyer only after the receipt of completion Certificate.
- Insertion of Explanation will be applicable to the cases wherein the construction activity has yet not commenced, going on or having been completed but completion certificate not received and the buyer makes payment to the builder. It will not affect the transactions wherein the payments have been made before 1-7-2010.
- Service Tax exemption is provided to construction done under the Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awaas Yojana by notification no. 28/2010 dated 22nd June 2010.
- Insertion of new clause zzzzu in section 65(105) i.e. levying of Service Tax (ST) on the amount collected towards preferential location or internal / external development. Such as services provided by a builder to a buyer in providing preferential location or external or internal development of complexes on extra charges.
- Deletion of the word “service” from title of section 65(25b) and deletion of the word “service” from clause 65(105)(zzq) i.e. definition of commercial or industrial construction.
Contractor is entitled to claim abatement
There was some relief for the real estate sector with the finance minister offering for partial roll back of service tax that was imposed on the sector during the budget. Finance minister has rolled back Service Tax to 25% from 33% in the April session when house discussed and passed the finance bill. Abatement scheme, under notification number 1/2006 dated March 1, 2006, says that the contractor is entitled to claim abatement to the extent of 67 per cent of the value of services rendered by him. The finance minister has increased abatement from 67 per cent to 75 per cent. The abatement is subject to the following conditions:
- No exemption would be applicable for mere completion and finishing services
- The increased abatement of 75% would not be applicable in cases where the cost of land has been separately recovered from the buyer by the builder or his representative. This means that the abatement would have to be calculated on the entire value of sale of flat/unit. Effectively the rate of service tax shall be 2.575 (25% * 10.3%). Also by presumption the notification has indirectly considered value of land at 8% (75%-67%). This in my view is not correct.
- The abatement is subject to non-admissibility of Cenvat Credit on inputs, capital goods or input services.
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Authorities for issuing completion certificates
It should be noted that the service tax would be levied only on under construction property. A property is considered “under construction” till the builder receives a “completion certificate” from the relevant authorities. However the ministry has sought legal opinion as local authorities in some states do not issue completion certificates. The government is thinking of allowing some independent authorities, such as architects or builders’ associations, as a sufficient proof of completion.
For the purpose of issuing “completion certificate” by “competent authority” it has been clarified by notification no.1/2010 that for the purposes of sub-clauses (zzq) and (zzzh) of clause (105) of section 65 of the Finance Act, the expression ‘authority competent’ includes, besides any Government authority,-
- Architect registered with the Council of Architecture constituted under the Architects Act, 1972(20 of 1972); or
- Chartered engineer registered with the Institution of Engineers (India); or
- Licensed surveyor of the respective local body of the city or town or village or development or planning authority
who is authorized under any law for the time being in force, to issue a completion certificate in respect of residential or commercial or industrial complex, as a precondition for its occupation.
No Service tax
- From July 1, all sales of under-construction property will attract service tax. However, resale properties would not levied service tax as resale properties would essentially have obtained a completion certificate.
- No service tax if entire payment for the property is paid by the buyer after completion of the construction including certification by the local authorities.
- The low-cost housing segment (property worth less than Rs. 20 lakh) will be exempt from service tax when the same is rendered as part of Jawaharlal Nehru national Urban Renewal Mission (JNNURM) and Rajiv Awaas Yojana. The taxable service of construction of complex in the context of these two development schemes have been kept out of the ambit of service tax.
The property buyers have to shell out an extra for payment made for purchase of property from July 1. It should be noted that the service tax would be levied only on under construction property. The ministry has sought legal opinion as local authorities in some states do not issue completion certificates. The low-cost housing segment (property worth less than Rs. 20 lakh) will be exempt from service tax when the same is rendered as part of Jawaharlal Nehru national Urban Renewal Mission (JNNURM) and Rajiv Awaas Yojana. Service Tax would not be levied on parking lot and resale property. All sales of under-construction houses from July 1 will attract service tax with the finance ministry notifying tax on new services. Service tax has also been levied on any payment made by buyer to the builder for getting a preferential location.
Tags: abatement, Amendment in Service Tax, Amendment made by the Finance Act 2010, completion certificates, exempt from service tax, Finance Act 2010, Insertion of Explanation, Service Tax exemption, Service Tax for Under Construction Property, service tax on construction, Service Tax on realty, under construction property, under-construction
Good article. Much more informative. Still the term sale of property from 1 July 2010 is confusing. Is this mean booking a flat after this date? or registration of flat after this date? or full/partial payment after this date? Any one have clear idea?
Also what is the date of payment? the date on which you have given cheque or the date when builder get it encashed?
What are the implications on this wherein partial payment is made before Jun 30, 2010, and the remaining payment is made after Jul 1, 2010. For instance, if Rs. 45L is paid before Jun 30, 2010, and the builder gets completion certificate say on Oct 1, 2010 and the remaining payment say Rs. 5L is made thereafter.
Then on 5L amnt service tax wud be levied. clearly mentioned above.
There would be no service tax levied in this case. For instance Rs. 45L is paid before Jun 30, 2010 and remaining 5L is paid after obtaining Completion Certificate (CC). It should be noted that the service tax would be levied only on under construction property and payment made on under construction property after July 1, 2010. A property is considered “under construction” till the builder receives a “completion certificate” from the relevant authorities.
Service Tax would not be levied on payment made by property buyer before July 1, 2010 and after obtaining a completion certificate.Therefore there would be no service tax levied in this case.
Thanking you,
Hello
What will be the tax liabilities for buyers if property is booked in 2007 ie before jul01, 2010 and property is still under construction.
We have some 5% outstanding payment towards builder left as of now.
Ramneek
It is assumed from above that payment of installments made before 01st July, 2010 shall not attract the proposed 2% Service Tax. My assumption may please be confirmed.
Thanking you,
yes ur correct
What happens if a buyer buys a property as a 2nd sale which is still under construction and partially paid. Say first buyer paid Service Tax from July 2010 till Dec 2010 and then sells to another buyer. How will Service tax be adjusted, if at all it will be adjusted.
I purchesed under construnction flat in pune on 5-july-2010. cost of flat is 18.60 lack. plz let me know that is service tax will be applicable or not ?
Hi,
Pls go to below Govt website, where its mentioned clearly that no service tax on payment made before 1st jul 2010.
http://www.servicetax.gov.in/st-cirmainpg.htm
Pankaj
sir,
As per the service tax amendment 2010 under constuction propertly -builder construct building less than 12 units residential flat, service tax applicable or not pls clearly guide me
Very informative article and a good site for a person like me who has very little knowledge about sale/purchase of property.
I am still bit confused with regard to Service Tax – in my case I have made complete payment for my flat before 1st July 2010, however builder has not obtained completion certificate from authorities, hence only payment of stamp duty is pending from my side.
Do I have to pay any service tax now or not?
Would really appreciate your help/advise.
Hi everyone,
In case you have done part payment before 1st July for a under construction flat..
The service tax is payable for any payments after 1st July only. I just did that today with my builder. You pay pay the service tax in parts each time you make a part payment. No ST for any payments done before 1st July.
cheers.
Hi Rajesh,
Whats your builder name? I have asked my builder Esteem Developers for same thing. He does not understand simple notification. He is asking ST for payment made before 1st Jul 2010.
Thanks.
Pankaj
Hi All,
I have query regarding service tax, I paid 15% of the property cost before 30th June 2010 and handed over the cheque for remaining 85% of the property cost on July 02, 2010. The loan was processed through LIC and they have issued a cheque of 85% dated June 30th 2010.
The build has asked for a cheque on his company’s name. I am consfused that my property was ready possession and that’s why LIC made 100% disbursement. I am not sure why do I need to pay service tax based on the discussion. Above.
Please help me understand this.
Thanks,
Murty
Hi Murty
I guess you must have collected the completion certificate from the builder. If there was a completion certificate you need not worry. You can also confirm this from the LIC HF. Also as your cheque is on dated 30th, your builder must have given you receipt dated 30th. If it is there again you are safe. Even you can ask for that. Builder should not have any problem in that, nothing he is loosing and you can save money. And lastly Bombay HC had put stay on Service tax again. Cheers for some time atleast.
Thank Vikas, Actually Builder has not given me a completion certificate infact he has given a demand letter to LIC HF wherein he has mentioned that flat is 100% ready. I think this demand letter will play a major role in this fight… I am suspecting that the builder is looting for no reason… as Barani in below thread has mentioned about service tax of Electricity deposit my builder is also trying to do the same…
Nice article, thanks.
My builder has levied service tax on the Electricity Deposit as well. Is that right ?
Thanks,
Barani.
Hi Barani I donot think you should pay any money go to service tax department and find out yourself…
Mr. Baranidharan,
Its all about builder and buyer settlements, if he is levied there is no wrong.
Thanks,
Nagendra AS
It’s Good Article which is expected from you, but not mantion clearly about Commercial Property, Service tax is applicable or not
Hi All,
I am planning to buy a flat and the builder is asking for a service tax which i understand i now applicable. But i want to know when shoould the service charge be clooected from the builder from the buyer. In my case, the builder is adding the service tax to the total cost of the flat and asking me to pay servce tax along with the cost of the flat in each installments. Should the service tax be collected during the posession or registry or can the builder cllect the service charge starting from the beginning of the payments.
Thanks,
Abbi
I had paid 50% amount before 1/7/2010. Completion certificate issued before 1 july 2010. Am I liable for service tax for remaining amount?
NO SERVICE TAX FOR YOU. CHEERS
Hello Vikas,
My builder has given me a demand letter which clearly says construction work of my flat is 100% complete but he is asking me to pay service tax saying that govt has not authorised me to give completion certificate. I have also been to service tax department and got a letter from service tax commissioner which says my case is exmpted for service tax. Builder is saying unless you pay this I will not give you possession.
Please suggest.
Thanks,
–Murty
Hi Murthy
I dont know which builder is he. there is no point you should pay any money to him. take a legal help. I would suggest before that go once again and sit across table to discuss this. take your friend or relative with you. talk with them that you are not under service tax then why he is asking this amount. If this doesnt work, threathen them with legal action. You can launch FIR and go with consumer court. You deserve to have much more compensation for the suffering you are facing because of builder. This is what I would have done if I would have been in your place.
Thanks Vikas, I had a big fight with the builder and I am still trying out options, unfortunately I am left with only a few weeks with my current rented house and I am not sure how long will this take…
More over the service tax laws are so recent that noone is able to give me concrete details… I am thinking to consult a lawyer today…
Thanks for the responses so far…
Hi Himanshu,
i bought a flat in March. the agreement registered in march 2010. its under consrtuction. i have made 40% payment till now. will service tax be levied on rest of the 60%? from circular looks like it is but just want to confirm with you.
Thank you, Vikas sir for your reply. In my case I paid ST for remaining amount (50%) for tenament on August 2010. I have got completion certificate on 28/06/2010. Who can claim for refund? I have given cheque to buidler. Is there any written statement about completion certificate clarification, as it’s interpretation is very confusing.
Hi Murthy ,
I am having same scenario like you. Can you send me letter copy from service tax department? My gmail id is prakuljd@gmail.com. It vl be great help for me. Who can claim for refund?
Hello Praful,
The builder is a bugger and still demanding service tax, I have paid the tax for now as I had no options, I am waiting to see if I can do something about it at later stage.
It’s hard to believe that I should pay service with given condition.
The letter that I have is very specific to my case and more over it is also very vauge.
Let me know if you get any success in saving service tax.
Thanks
–Murty
Dear murty, Please try understand the role of the builder. After all he has just a role of postman. He (builder) is taking money since he is giving a service to you and it is taxable.
Do i need to pay Service Tax to the installments after 1.7.2010 to the builder during the stay order period. what is the law?? I have only two installement left , the builder has already delayed the construction due to recesioon else we could have go the possession by Jan 2010.
If during stay order period we can complete the installments can the builder still has the rights to charge service tax.
Do i need to pay Service Tax on the installments after 1.7.2010 to the builder during the stay order period. what is the law?? I have only two installement left , the builder has already delayed the construction due to recesioon else we could have got the possession by Jan 2010. The dealy in the construction is beause of the Builders , which i am sure with most builders
If during stay order period we can complete the installments can the builder still has the rights to charge service tax.
Hello Rehan,
You might have to pay service tax on only last two installments or any other installments which were paid after 30-06-2010.
In my case I paid ST for remaining amount (50%) for tenament on August 2010. I have got completion certificate on 28/06/2010. Who can claim for refund? I have given cheque to buidler. Is there any written statement about completion certificate clarification, as it’s interpretation is very confusing.
There is a stay order on this service tax so why we pay the builder the service tax , we can give an undertaking that if the law is in favour of service tax then we make the payment in lumpsum for the installement done after 1/7/2010 till date . If the court order is in favour of the builder then when the builder will refund the payment . We must take an undertaking from the builder for the refund.
Is the builder paying the Service tax to the govt despite of stay order if they are doing then if the Service Tax loses the case they i wonder when the govt will refund ..
We are buying a property from the builder and paying all charges for land ,construction , society charges , stamp duty and registarion on top the builder charges on the Super Built up area which is more than 25% and now the govt wants service tax . I dont know what service tax when we are alreday paying for buying the property .After we buy the property we will as it is be paying corporation tax per annum to the govt.
Both cases we buyers are the losers an its our hard earned money ??
There is a stay order on this service tax so why we pay the builder the service tax , we can give an undertaking that if the law is in favour of service tax then we make the payment in lumpsum for the installement done after 1/7/2010 till date . If the court order is in favour of the builder then when the builder will refund the payment . We must take an undertaking from the builder for the refund.
Is the builder paying the Service tax to the govt despite of stay order if they are doing then if the Service Tax loses the case they i wonder when the govt will refund ..
We are buying a property from the builder and paying all charges for land ,construction , society charges , stamp duty and registarion on top the builder charges on the Super Built up area which is more than 25% and now the govt wants service tax . I dont know what service tax when we are alreday paying for buying the property .After we buy the property we will as it is be paying corporation tax per annum to the govt.
Both cases we buyers are the losers and its our hard earned money ??
exactly
No need to pay any additonal charges , till matter is pending in High Court.
Let us wait , watch and hope for good outcome.
If the delay happen from the builder side why we should pay for it ?
I made all the payments before July 1, 2010. The builder had also collected service tax at that time. Do I have to pay the service tax or shall I ask the builder to refund it.
In Maharashtra, there was VAT being collected by some builders on sale of properties after June 2006. This was again under dispute and the builders were taking undated cheques towards this VAT. What is the final status on this?
Dear Shivam ,
You must consult a lawyer/ Tax Consultant . Our Builder has collected ST on only payment made after 1st July . Your buiider has no right to collect ST on payment made before 1st July. Our Builder has also not charged the ST yet because there is a stay order but if the court ruling is in the favour of ST then we will have to pay ST all payment made after 1st July.
The 2% Service Tax now imposed by Govt. of India w.e.f. 1st July, 2010 would work-out to a substantial amount and this will prove to be the last straw to break the camel’s back. Mr Jaipal Reddy, Union Minister for Urban Development has enacted a drama and made a categorical statement that he will make all endeavours to convince Mr Pranab Mukherjee, Finance Minister to withdraw this as it is bound to affect the common man when a large chunk of Indian population did not have a shelter and a roof over their heads. However Mr Jaipal Reddy miserably failed in his attempts to convince the Finance Minister. Members of Parliament had created ruckus and made a vociferous demand on the floor of Parliament to get their salaries and allowances enhanced five fold and did not protest and raise their voice for this additional taxation. This additional financial burden on the common man is to be absorbed / borne by the Builder to give relief to the Flat owners for the ongoing Projects. The Real Estate Builders may collect the Service Tax for their New Projects in the offing.
ABV Vijaya Lakshmi
06th September, 2010
Hi, I am query related to service tax applicable to my property.
I have purchased the flat in Oct.2009 at cost 21 Lakhs. Still construction is going on. It is likely to get possession at the end of November. I have disbursed around 90% amount to the builder. So am I eligible for service tax?
Who is going to pay Service tax? builder or me?
The low-cost housing segment (property worth less than Rs. 20 lakh) will be exempt from service tax.
still builder is charging service charge from me.. can anybody throw light on it & guide me…
I have booked house under construction at my native place Alibag in Raigadh district around 80km away from Mumbai on june 2010. The net cost of the flat is 13 lakhs. The builder is demanding the service tax at 2.6% on the installments paid from 1July 2010 onwards till date. Is this correct as per the law? Pl advice
I have purchased ready possession flat in the month of August. Agreement was done and remaining payment will be made in the month of Nov. I paid 15% on aggrement in the August and remaining needs to pay in the november. While registry, It has been mentioned that the buyer need to pay remaining 85% becuase building is in ready possession. Till now there is no completion certification, Builder is in process to get completion certificate but building ready to move. I can move in the building on say daybecause it is ready possition and 50-60 buyers got possion.
There is no payment in installment to builder by me or bank. I am paying all amount ( bank loan and my contribution) on same day in the end of november. Will service tax application to me. If applicable then what is the clause and if not applicable then what is the cluase. Please help me on this stuff because I need to discuss with builder while paying remaing amount.
Dear sir i bought flat in may 2008 at bhayander agreement in may 2008 iwill paid 5% vat builder not refund my vat amount pls give me help
I have purchased under construction a flat in Rahatani pune in 16 march2010. at the time of buying there was no descussion made on service tax from builder. now he is asking for service tax. kindly guide me what to do? the possession is due by JAN 2010.
The property value is of 16.72 Lac. I paid 5.72000 DOWN PAYMENT and 11,00,000 IS THE LOAN AMOUNT BUT stagewise payment will pay from the loan. FIRST PAYMENT IS 7 ,62,000 which DD has Date is 28-6-2010 that is in june on that amout can I pay service tax.and remaining amount is paid in july. Can u say that from which date service tax will be pay.
I have purchased under construction a flat in Rahatani pune in 16 march2010. at the time of buying there was no descussion made on service tax from builder. now he is asking for service tax. kindly guide me what to do? the possession is due by JAN 2010.
The property value is of 16.72 Lac. I paid 5.72000 DOWN PAYMENT and 11,00,000 IS THE LOAN AMOUNT BUT stagewise payment will pay from the loan. FIRST PAYMENT IS 7 ,62,000 which DD has Date is 28-6-2010 that is in june on that amout can I pay service tax.and remaining amount is paid in july. Can u say that from which date service tax will be pay. flat is 100% ready. I have not collect the completion certificate from the builder.
he is cheating you service tax becomes applicable or not but he will gulp all ur money given as service tax in his pocket.All the builder communities are greedy and inhuman with each and every one has political connctions especially with NCP-
hey dude , he is cheating you. You are not supposed to pay any service tax as you have made agreement before JUL 2010.
I have purchased under construction a flat in Rahatani pune in 16 march2010. at the time of buying there was no descussion made on service tax from builder. now he is asking for service tax. kindly guide me what to do? the possession is due by JAN 2010.
The property value is of 16.72 Lac. I paid 5.72000 DOWN PAYMENT and 11,00,000 IS THE LOAN AMOUNT BUT stagewise payment will pay from the loan.
FIRST PAYMENT IS 7 ,62,000 which DD has Date is 28-6-2010 that is in june but my builder gives me receipt for that amount on date 8-7-2010.
Second PAYMENT IS 1 ,50,000 which DD has Date is 9-8-2010 my builder gives me receipt for that amount on date 12-8-2010.
Last PAYMENT IS 1,85,800 that is remaining.
MY agreement is done in 3-5-2010.
My flat is 100% ready. I have not collect the completion certificate from the builder.
MY agreement is done in 3-5-2010.
My service tax is Rs.28325(on11,00,000Lac)
My Builder asks for service tax HE GIVES ME TWO OPTION TO PAY SERVICE TAX
1. he says that he take service tax from me AND gives a receipt of Rs.28325 but not mention in that receipt that this money is for service tax.(ONLY TAKES MONEY).
2. he says that he gives on a letter pad , is mention in that he take service tax from me but not mention that HOW MUCH MONEY HE TAKES FROM ME.
Also I hear about Service tax ,can this is applicable for my flat
The low-cost housing segment (property worth less than Rs. 20 lakh) will be exempt from service tax.
still builder is charging service charge from me.. can anybody throw light on it & guide me…
I confused in this matter .it urgent pls reply me in detail.
Thank U.
Dear Sir/Madam,
I and my father have jointly booked a flat from a builder in Calcutta. We signed the agreement on 1st June 2010. We have paid booking amount at that time only.
From July 2010, the builder has started charging service tax 2.5% from us although we have already signed agreement prior to July 2010. In this regard we want your opinion whether we should pay service tax @2.5% or not? If not, then what steps we should take?
With warm regards,
Anshul Srivastava
Hi ,
I am not lawyer . Pls consult a lawyer in this matter . As far as i know that any payment after 1st july 2009 u pay , u will have to pay 2.5% as service tax to the builder. But there is a stay order on this service tax . so unless the stay order decsiion is made by the court u must not pay, however u can make a stamp paper agreement promising him to pay ST on all the payments made after 1st July if the court ruling is in the favour of the government .
I have done the same I had a payment pending after 1st july of RS 8 L so i will have to pay ST an this amount and not the whole ammout . I will only pay after the court ruling so i am paying remaining installment without ST.
Hope this helps .
Regards
As there is stay by Mumbai HC on collection of Service Tax on underconstruction properties, but still builder collecting the same from buyers. As they are saying that “till now we didn’t received and notification”.
What is the course of action by authorities in this matter.
hi,
i have booked one flat in greater noida..paid 40% payment. due to the late communication from the side of builder i have been charged interest on the 30% payment… i would like to ask from the experts that if service tax b levied on the interest paid due to late payment.
Sunita
I have booked one under construction flat at Serampore,Hooghly in the state of West Bengal,the measuring 708 sq.ft & in urban area.Kindly,let me know wheather I have to pay service or not?dhruba.pfa.hooghly@gmail.com
Hi,
I have booked a flat in Kolkata.
My flat cost including garage is around 23 lakhs.
Possibly, the CC has been issued in August 2011 month.
Now, immediate before the registration the developer/promoter has asked
me to pay around 80,000 INR extra for the purpose of service tax which
is according to him has been paid to the government for complete
building.
I have a little doubt on whether this service tax is supposed to be paid by me or it is entirely by the developer/promoter.
Some sources say this tax has to be paid by the developer/promoter
only and the customer or the buyer is not liable to pay this kind of
service tax.
Please, let me know if I am suppose to pay this service tax to my promoter/developer.
Please, reply me. I am waiting for your response.
Thanks
Dayamay
I had purchased a single bedroom flat in Margao, Goa in march ’09 costing 14.47lakhs. I have already made a payment on 12.75lakhs before 1st july ’10. Only a payment of 1lk was made after d said date. Now my flat is due for posession and d builder is charging me 2.575% service tax for the entire 14.47lakhs. Am i liable to pay d same. Is my flat considered a low constuction flat. Pls reply on namitapp@rediffmail.com urgently
what is the basis of this service tax? what service? if the builder is delayed why should an individual buyer who is a wage earner pay service tax? in my opinion my builder could be purposely delaying the construction? because they get the finances from the individual buyers and use the money for multiple projects? is’nt that how they utilize the payments made to them? they take our money, keep us hanging, delaying the construction, never giving any answers in writing, always pretending they are working hard on the construction when in actuality they are delaying the construction, using our payments to develop other multiple projects???
i am sick and my builder has already delayed the construction by 2 and a 1/2 years now. They never confirm any timeline in writing. Whenever I ask them when the construction will be ready they have now told me july of 2012???
then I suddenly get a letter from them saying they will be collecting service tax from me??? what is this???
they are not doing any service to me, but a great big humungous dis-service!!! I have already paid them the full amount required by the contract. They were to pay a penalty to me for being late which thet never talk about, and now this letter to me for demanding a service tax?????
can the government allow this kind of behaviour by the builders??? and this service tax? what exactly is the BASIS FOR THIS TAX???
Can someone be kind enough to explain this to me??? The builder should be paying me for not handing over my apartment to me on time as promissed, plus since I bought the apartment thinking I will be moving into same at the particular time the apartment was to be handed over to me, has not happened??? this has caused me a lot of pain and financial losses???
will the builder compensate me? this builder should be held accountable for their actions or the lack of proper delivery on promised time?
can someone advise me who to approach in the government body, so I can discuss my case with a government official who can find me the justice I need???
thank you!
Dear Sir,
Need clarification wrt the following issue: -
1). I booked a flat (residential complex) in June’10 and paid 90% of flat cost balance 10% I am paying after receiving the completion certificate. Then will I have to pay service tax on balance 10%.
2). I am buying a flat (in residential complex) which was bought by some other person in Apr’10 and now he is assigning the same flat to me after the completion certificate has been issued. He had paid 60% of flat cost and now balance 40% will be paid by me. Will I have to pay service tax on the same.
Need your view on the same.
Thanking you
Dhiraj
My flat value is approx Rs.25 lacs out of which almost 80% payment is made as of now by way of my personal saving and arranging home loan. Am I liable to pay service tax of 2.575 % on balance 20%. Pls. let me know. Thanks
Your purchase should be before July 2010. Else u need to pay
I have purchased a duplex whose total price is 3125000/-(land cost is 600000/- and construction cost is 2525000/-) and the registry has been done on land i.e. the stamp duty has been paid for 600000/-.Can you please guide me how much service tax I would have to pay for this house to builder.