Is service tax payable to Maintaining company?

Q: We do not have Owner's Association in our residential complex.
Builder is managing the maintenance and security aspects.
He is charging service tax.How do we find out whether it is paid to the Government by him?

santhanam, Property Manager

4th August 2014

Legal in Chennai

service tax

legal isssue

maintenance charges

maintenance fee

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Replies (4)

Mr Venugopa,Thanks for your reply.
My question was "how to know whether the service tax collected is paid to the Government by the Builder who is managing the maintenance etc aspects?
Is he expected to mention his service tax number in the receipt he gives?please clarify both points.thanks

santhanam, Property Manager

22nd August 2014

Comment

HI,
Ask for the Monthly Maintenance Bill. The Tax is paid to the Government on a monthly basis, and returns are filed in a quarterly or half-yearly basis. The rate for the tax is 12.36%. e.g., if you charge Rs.6000/month maintenance for a flat, the total amount to be collected from the Member is [Rs.6000 + 12.36% of Rs.6000].

Venu Gopal, Chennai

22nd August 2014

Comment

HI,
To get more details about Owner's Association and its benefits click the link Rules for an apartment owner’s association

Uday kumar, Chennai

5th August 2014

Comment

Hi,
You must have an Owner's Association in your residential. An apartment owner’s association is formed by a volunteer association of the owners of an apartment in India. The association may or may not be registered. By registering the association, members can enjoy legal benefits and the association gets a unique name registered.

As far as my knowledge is concerned service tax has to be collected by the associations in addition to the regular maintenance charges if it exceeds Rs. 5,000 per month per member.

Venu Gopal, Chennai

5th August 2014

Comment