sanav3

I have taken possession in June 2009, and builder is still to complete higher floors... so I have possession certificate but no completion certificate...

So how does ST apply here?

realacres

All the payments made till Mar 10 will be exempt from ST irrespective of the status of the project. However, post Mar 10, ST will be applicable as said above. Hence, you don't have to pay a single dime as ST. Happy man?
As you have made 100% payment, you need not worry about ST. It is the buyers on higher floors who should be worried as remaining balance payment will have ST imposed on it.

__________________
It takes Hands to build a House but only Hearts can build a Home!

realacres

No man, it is rather to discourage speculators who buy in bulk in under-cons & sell at premium for ready poss. Another factor being that people will look for ready poss, hence the issue of the builder pending the completion date won't arise. Builder too will focus on completing the current projects first rather than going in for multiple projects with no time-frame in sight. Btw, the ST is to be paid by the builders & not the buyers. However, if the builder passes this to customer, then the later will have to shell out about 3.3-3.5% more on total amount mentioned in the agreement.

True. If poss date is delayed, then either the buyers should pay the balance amount before the actual completion takes place before 31st Mar 10 or pay ST on the balance amount. However, the delay of couple of months should not be a deterrent as 95% amount must be already paid. Hence, you pay 3.35% only on the remaining 5% amount which is hardly few thousand rupees, though no doubt that this money is wasted too. Hence, see if the builder is ready to bear the cost then. Some may accept if the cost involved in very less. As far as compensation is concerned, it is there in many agreements, irrespective of ST, but this clause is hardly honoured by the builders in general.

Correct. One will pay more to builder if the savings involved in huge. If not, better hold as the ST is applicable only on balance amount.
Man, the govt is not giving any incentive to builders rather this is harmful for them as they will have to arrange for funds on their own as many people will prefer ready poss. If not, the builders will have to bear the ST as said by the govt & can't add this in their price.

* The govt has fully understood that despite all the measures, the builders don't pass on the benefit to the buyers & rather loot them. Hence, they too decided to loot the builders.

realacres

For ready poss means flats which possess completion certificate & not just physical possession. If completion certificate is there, one doesn't need to pay any ST.

For parking being exempt, it doesn't make any difference here as parking amount is not shown separately as sale of car park is not allowed under MOFA. However, it will bear an impact on other states where park is shown separately in the agreement.

lazybone007

But what if you have possession letter but no completion certificate? In this case the entire amount would have been paid to the builder already. So it means no ST is applicable. Am I right?

amit3011

I thought ST is applicable for customization charges and additional facilities provided as service and not for building the flat as per the sanctioned plan. Let me know if its correct!

Poonam

I had bought an under construction flat last year April under downpayment scheme and took home loan for the same.
The possession of the flat is due next year.
Is this ST applicable in my case too when I take the possession (coz at that time I'wll have to pay the extra charges including maintenance, registration... etc.)???

amjamirs2

As per my knowledge, ST will be applicable only to specific customizations done to the flat and not on the cost of flat.

Guys quoting 33% of flat cost applicable to service tax, please elaborate on your sources...

kothrud_pune

As per my understanding...payment maid till 31 March 10(probable date) will not be charged any ST.But remaining payment will be charged with ST.

ST is not only for customization...but for flat construction.As builder is providing construction service to u.

amit3011

Real estate is not controlled by any regulatory authority. Most of the services are having regulatory authority. Like TRAI for telecom,Health department for hospitals,etc. Does the builder require licence to become a builder?