Heard that ATS is coming up with their Residential project in sec 109 in 14 acres , next to atharva.....

Anybody having any more info on this....????
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  • AS far As i Know , Chintels havent asked for any of the parking charges so dunno if they will ask for it on Parking or not , THey havent asked on EDC / IDC as those installments have been raised by them.....

    Regarding the Tax component on Kocoon project , lemme check with someone about it , because only 30% of the payment has been asked in this project till now.
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  • I had a talk with the ATS guys and yes you are right they are including it in the BSP. As of today they refer to some SC ruling that forbids sale of car park separately.
    I am pushing them to absorb the extra service tax burden due to the increase in BSP because of car park inclusion. Maybe others can also try. Lets see if they agree.
    Regards

    Originally Posted by Kashmiri
    Request Bhalla ji and others to comment. Lot of members like VB, Amit 79, bewoluf etc who has invested in ATS or Chintel can also contribute their view point on this.
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  • Originally Posted by beowulf
    I had a talk with the ATS guys and yes you are right they are including it in the BSP. As of today they refer to some SC ruling that forbids sale of car park separately.
    I am pushing them to absorb the extra service tax burden due to the increase in BSP because of car park inclusion. Maybe others can also try. Lets see if they agree.
    Regards



    Ok thanks, Do you agree that tax is not applicable on car parking? As such there is some confusion that service tax is applicable or not on car parking.
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  • No Service tax on charges for parking space

    As per the circular issued by Central Board Excise & Customs, the charges for providing car parking space has been specifically excluded from the scope of service tax. Hence builder cannot charge service tax on charges for providing exclusive right to use car parking space.

    If ATS includes charges for right to use parking space in BSP, then service tax of 3.09% on such charges shall be an extra cost.
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  • Originally Posted by beowulf
    I had a talk with the ATS guys and yes you are right they are including it in the BSP. As of today they refer to some SC ruling that forbids sale of car park separately.
    I am pushing them to absorb the extra service tax burden due to the increase in BSP because of car park inclusion. Maybe others can also try. Lets see if they agree.
    Regards


    Thanks for the update. I will call them shortly for explanation.
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  • As I said earlier, ATS folks tell me that there is a Supreme Court ruling stating that builders cannot charge extra for car parking. So they have no choice but to include it in the BSP.
    In case there is no such mandate from the court, then their argument is not valid. I don't know if there is any such ruling by court.
    Regards

    Originally Posted by Kashmiri
    Ok thanks, Do you agree that tax is not applicable on car parking? As such there is some confusion that service tax is applicable or not on car parking.
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  • Originally Posted by beowulf
    As I said earlier, ATS folks tell me that there is a Supreme Court ruling stating that builders cannot charge extra for car parking. So they have no choice but to include it in the BSP.
    In case there is no such mandate from the court, then their argument is not valid. I don't know if there is any such ruling by court.
    Regards

    yes there is a ruling to that effect, there are certain exclusions and if and buts...dont know in that details.
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  • Yes this is true. The law has been there and some recent cases in favor of the buyers have made the builders cut down on this parking charge as a seperate component and they are starting to include it as a part of the value of the house. Heres some related articles,

    Builders can

    Builders skirt SC order, sell parking slots - Times Of India

    'Builder cannot sell parking space' - Times Of India


    Originally Posted by beowulf
    As I said earlier, ATS folks tell me that there is a Supreme Court ruling stating that builders cannot charge extra for car parking. So they have no choice but to include it in the BSP.
    In case there is no such mandate from the court, then their argument is not valid. I don't know if there is any such ruling by court.
    Regards


    Originally Posted by golu11
    yes there is a ruling to that effect, there are certain exclusions and if and buts...dont know in that details.
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  • Originally Posted by beowulf
    As I said earlier, ATS folks tell me that there is a Supreme Court ruling stating that builders cannot charge extra for car parking. So they have no choice but to include it in the BSP.
    In case there is no such mandate from the court, then their argument is not valid. I don't know if there is any such ruling by court.
    Regards


    Yes I understnad that there was a ruling about 2 years ago and accordingly Aura 2 by Mahindra was sold with parking included in BSP.
    The recent article as per below link in ET as provided by other member may be also seen:
    Can you sell your car parking slot? Find out your legal rights - The Economic Times

    "This is because of the 2010 Supreme Court ruling, according to which flat buyers need not pay extra money to buy parking spaces, both open and closed, from property developers."

    But if ATS want to change this to avoid their problem then it should not be at expense of investors as service tax unnecessary shall be levied on investor approx 18000/-
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  • Originally Posted by cnbc2012
    As per the circular issued by Central Board Excise & Customs, the charges for providing car parking space has been specifically excluded from the scope of service tax. Hence builder cannot charge service tax on charges for providing exclusive right to use car parking space.

    If ATS includes charges for right to use parking space in BSP, then service tax of 3.09% on such charges shall be an extra cost.


    Thanks, but as explained there is a confusion on the applicability of service tax on parking.
    eg Vatika and Unitecg charging @3.09 % on parking .

    So will appreciate if you could provide some documentry evidence to take up with builder.
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  • No Service on charges for right to use parking space - Extract and explaination to introduction of service tax clause in Finance bill in 2010



    Special services provided by builder etc. to the prospective buyers such as providing preferential location or external or internal development of complexes on extra charges.

    It is proposed to insert clause (zzzzu) in Section 65(105) of the Act so as to define taxable service as “ service provided or to be provided to a buyer, by a builder of a residential complex, or a commercial complex, or any other person authorised by such builder, for providing preferential location or development of such complex but does not include services covered under sub-clauses (zzg), (zzq), (zzzh) and in relation to parking place.” The Explanation provides that “For the purposes of this sub-clause, ‘‘preferential location’’ means any location having extra advantage which attracts extra payment over and above the basic sale price;’.

    Construction of commercial or industrial structures was brought under service tax net in 2004 while construction of residential complexes became a taxable service in 2005. The scope of the existing services includes construction, completion and finishing, repairs, alterations, renovation or restoration of complexes. It has been reported that in addition to these activities, the builders of residential or commercial complexes provide other facilities and charge separately for them and these charges do not form part of the taxable value for charging tax on construction. These facilities include,-


      (a) prime/preferential location charges for allotting a flat/commercial space according to the choice of the buyer (i.e. Direction- sea facing, park facing, corner flat; Floor- first floor, top floor, Vastu- having the bed room in a particular direction; Number- lucky numbers);
      (b) internal or external development charges which are collected for developing/maintaining parks, laying of sewerage and water pipelines, providing access roads and common lighting etc;
      (c) fire-fighting installation charges; and
      (d) power back up charges etc.

      Since these charges are in the nature of service provided by the builder to the buyer of the property over and above the construction service, such charges are being brought under the new service. Charges for providing parking space have been specifically excluded from the scope of this service. Development charges, to the extent they are paid to State Government or local bodies, will be would be excluded from the taxable value levy. Further, any service provided by Resident Welfare Associations or Cooperative Group Housing Societies consisting of residents/owners as their members would not be taxable under this service.
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  • On Parking space sale

    I think, this judgement is about mumbai builders selling just the parking space as a garage to outside people.
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  • Originally Posted by vinaybhatia
    Thanks for the update. I will call them shortly for explanation.


    Hi Vinay
    Any feedback of your discussion with ATS and you would like to share with the forum for any meaningful conclusion.

    Regards
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  • Originally Posted by Kashmiri
    Hi Vinay
    Any feedback of your discussion with ATS and you would like to share with the forum for any meaningful conclusion.

    Regards


    Hi Kashmiri, I did check with Manager(Sales and marketing) regarding service tax. He also told the same thing which other members have updated before. Builder can't show parking charges in agreement because of some ruling and have to show it as part of BSP only. Whatever is shown in BSP amount will qualify for service tax and can't be avoided by builder. Builder is paying this tax to Govt and is not going to gain anything out of this.
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  • Few other notes that were exchanged during this call.

    1. ATS Triump launch is now planned in June. No confirmation on launch price yet.
    2. ATS is planning another project in Sec 109 that may be launched by end of the year.


    Originally Posted by vinaybhatia
    Hi Kashmiri, I did check with Manager(Sales and marketing) regarding service tax. He also told the same thing which other members have updated before. Builder can't show parking charges in agreement because of some ruling and have to show it as part of BSP only. Whatever is shown in BSP amount will qualify for service tax and can't be avoided by builder. Builder is paying this tax to Govt and is not going to gain anything out of this.
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