Service Tax on Under Construction Flat booking - Page 32 - Indian Real Estate Forum

Jitu_Sir · 29-09-10

Quote:

Originally Posted by Dipti

I would like to know if service tax is applicable for the case:
Flat is ready possession and completion certificate obtained after 1st July 2010. The booking and registration is done in august 2010.

As far as I know if you have completion certificate before booking the flat ST is not applicable.

Jitu sir can u let me know if my understanding is correct?

Dear Dipti,
Since the flat is booked in the building which has already received completion certificate in this case Service Tax is not applicable. If you are making payments for the flat which has received occupancy certificate then the payments does not attract ST.

newabhishek · 25-10-10

Hi,

My builder has demanded a 10.3% service tax on MSEB 75000 and society formation (headed under other charges) - 20000. Can I get a clear picture on this, pleaseeeeeeeee?

Anyone with any information/ similar exp?

Jitu_Sir · 25-10-10

Quote:

Originally Posted by newabhishek

Hi,

My builder has demanded a 10.3% service tax on MSEB 75000 and society formation (headed under other charges) - 20000. Can I get a clear picture on this, pleaseeeeeeeee?

Anyone with any information/ similar exp?

Dear newabhishek,
Any amounts taken other than the Agreement value will attract a ST of 10.3%. The concession of 2.575% on ST is only for agreement cost.

newabhishek · 26-10-10

Thank you Jitu Bhai. Is there any way we can validate this?

- may be the which says this particularly (section/ circular from the ST authority) about the MSEB/ other charges. Since all the lawyers/ consultants have mentioned that builder can only collect 2.575% on construction cost and nothing else.
- Can I demand a clear receipt against the payments stating what these payments are.

Thank you again!

Jitu_Sir · 26-10-10

Quote:

Originally Posted by newabhishek

Thank you Jitu Bhai. Is there any way we can validate this?

Dear newabhishek,
You can get more clarity on it from a Chartered Accountant.

Quote:

Originally Posted by newabhishek

may be the which says this particularly (section/ circular from the ST authority) about the MSEB/ other charges. Since all the lawyers/ consultants have mentioned that builder can only collect 2.575% on construction cost and nothing else.

Anything other than Agreement cost shall come under 10.3% ST bracket.

Quote:

Originally Posted by newabhishek

Can I demand a clear receipt against the payments stating what these payments are.

YOu should get receipts for respective heads mentioning the 10.3% ST component.

inder33 · 27-10-10

Hi JituSir,

Is Agreement cost equals to area X basic cost???

How abt PLC, Is it under agreement cost??

This sound to be basic but it will help new bees

Quote:

Originally Posted by Jitu_Sir

Dear newabhishek,
You can get more clarity on it from a Chartered Accountant.

Anything other than Agreement cost shall come under 10.3% ST bracket.

YOu should get receipts for respective heads mentioning the 10.3% ST component.

25-10-10	#312
newabhishek New Member Join Date: Feb 2010 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Service Tax on MSEB? Hi, My builder has demanded a 10.3% service tax on MSEB 75000 and society formation (headed under other charges) - 20000. Can I get a clear picture on this, pleaseeeeeeeee? Anyone with any information/ similar exp?

26-10-10	#314
newabhishek New Member Join Date: Feb 2010 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	Service Tax Thank you Jitu Bhai. Is there any way we can validate this? - may be the which says this particularly (section/ circular from the ST authority) about the MSEB/ other charges. Since all the lawyers/ consultants have mentioned that builder can only collect 2.575% on construction cost and nothing else. - Can I demand a clear receipt against the payments stating what these payments are. Thank you again!

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