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Baroda : Cash payments to Builders


Baroda : Cash payments to Builders

Last updated: March 23 2018
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  • Baroda : Cash payments to Builders

    Dear Sir,

    I have booked residential flat in the Baroda city of Gujarat.

    The cost of the residential flat are Rs. 16,75,000.00.

    The builder has made two separate agreement i.e. Rs. 8,35,000/- as "Banakhata" and Rs. 8,40,000.00 as "Construction Agreement". It is under construction property and Builder give me possession within in three months.

    I have made 90% payments to Builder as per Agreement which are as under;

    01. Rs. 1,00,000.00 Dated 05.10.2015 (Booking Amount)
    02. Rs. 4,02,500 Dated 01.03.2015 (As per agreement for 30%)
    03. Rs. 5,00,000.00 Dated 20.05.2015 (1st Bank Disbursement)
    04. Rs. 2,35,000.00 Dated 19.06.2015 (2nd Bank Disbursement)
    05. Rs. 3,50,000.00 Dated 04.12.2015 (3rd Bank Disbursement)
    06. Rs. 87,000.00 will pay soon within one month. (4th and last Disbursement)

    At the time of "Dastavej", the builder is asking me to pay following amount in cash;

    01. Rs. 71,000.00 for service tax
    02. Rs. 41,000.00 Development agreement chares i.e. 2.5% of total cost of the property.
    03. Rs. 50,000.00 for Dastavej
    04. Rs. 50,000.00 for Maintenance and
    05. Rs. 50,000.00 for Development charges.

    Kindly inform me the service tax liability as the service tax rates are different during the 2015 and 2016.

    He is calculated the service tax at 15%, even though I have made payments in the year 2015 also and at that time the the service tax rates was 12.36%.

    Please inform me that the service tax will be calculated on Rs. 16,75,000.00 or Rs. 8,40,000.00 (i.e. construction agreement which include cost of material too)

    Thirdly, the Krishikalyan cess is applicable from June 2016 and I have made 90% of payments before June 2016.
    Kindly inform me the amount of the krishikalyan cess liability.

    Moreover, the development charges and development agreement charges are also not mention in any agreement and now he is asking me to pay in hard cash only.

    Most importantly, the builder is asking me to pay all above charges in hard cash only. He is not ready to accept cheque or issue any receipt for the service tax etc.

    I have no objection to pay legal taxes but the concern is that I need proof of payments of legal taxes.

    I have taken home loan from the SBI and now bank is asking me for the sale deed and mortgage formalities. The Bank is inform me that if I do not complete the formalities within one month then they will charge the penal interest from me. On the other hand, the builder is not ready to complete Dastavej formalities unless and until, I paid him above amounts in hard cash.

    I would like to request your good self to consider it very urgent and reply me at the earliest.

    Looking forward for your kind co-operation in this regards.

    Thanks & Regards,

    Ritesh Dave
    Last edited July 10 2017, 08:02 AM.
  • #2


    Re : Baroda : Cash payments to Builders

    I think, Builders are taking advantage of your ignorance and trying to exploit you.

    Actually, Rera bill is for protecting consumer lobby legally.


    • #3


      Re : Baroda : Cash payments to Builders

      Before GST, maximum service tax on under construction property was 4.5% inclusive of all cesses. If builder is asking more, then he is cheating you.


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