Interest on Service Tax for under-construction property - Indian Real Estate Forum

prasaddesai · 08-02-12

Hi,

It is now a fact that recent buyers like me can't escape the 2.5% service tax.

Now want to know if we are liable to pay an interest on the tax amount as well? Please note that there has been no delay in ST payment from my side.

Property purchased: Aug-2010
ST demanded: Dec-2011
ST paid: Dec-2011

Anyone else having a similar experience?

Regards,
Prasad

aks.abhishek · 10-02-12

Dear Prasad,

I had also purchased a 3 BHK end use property in gurgaon in march 2010, have made 25 % of the payment and taken the allotment.
Now,there was a demand of paynig the service tax last year and the last date stated by the builder was 30th Nov'2011.
I have made the payment on 2nd feb'11 but there was no intrest charged.

Also I had a confirmation from the builder that there cannot be any penalty or intrest charged on this amount.

Other group members Seniors can comment on this.

prasaddesai · 13-02-12

Many thanks Abhishek!

Can someone please guide me as to what is the best approach if the builder does not agree and still insists on taking interest from me.

Best Regards,
Prasad

08-02-12	#1
prasaddesai New Member Join Date: Feb 2012 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Interest on Service Tax for under-construction property Hi, It is now a fact that recent buyers like me can't escape the 2.5% service tax. Now want to know if we are liable to pay an interest on the tax amount as well? Please note that there has been no delay in ST payment from my side. Property purchased: Aug-2010 ST demanded: Dec-2011 ST paid: Dec-2011 Anyone else having a similar experience? Regards, Prasad

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10-02-12	#2
aks.abhishek New Member Join Date: Jun 2011 Posts: 5 My Mood: Thanks: 8 Thanked 0 Times in 0 Posts	Dear Prasad, I had also purchased a 3 BHK end use property in gurgaon in march 2010, have made 25 % of the payment and taken the allotment. Now,there was a demand of paynig the service tax last year and the last date stated by the builder was 30th Nov'2011. I have made the payment on 2nd feb'11 but there was no intrest charged. Also I had a confirmation from the builder that there cannot be any penalty or intrest charged on this amount. Other group members Seniors can comment on this.

13-02-12	#3
prasaddesai New Member Join Date: Feb 2012 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Many thanks Abhishek! Can someone please guide me as to what is the best approach if the builder does not agree and still insists on taking interest from me. Best Regards, Prasad