Hi,

I am starting this new thread so that everyone remains in sync even if the builders are different. I purchased Logix Blossom County and my builder has demanded service tax as follows:

BSP: 2.575%
EFC, FFC, IFMS, Lease Rent, Club Membership and PLC: 10.3%

I request other members who have recieved the ST demand to please mention how much ST is being demanded by other builders?

-Arpit
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  • I have booked in amrapali leisure valley villa
    Currently builder is charging 2.575 for all the payments made after 1st July
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  • Originally Posted by charming_arpit
    Hi,

    I am starting this new thread so that everyone remains in sync even if the builders are different. I purchased Logix Blossom County and my builder has demanded service tax as follows:

    BSP: 2.575%
    EFC, FFC, IFMS, Lease Rent, Club Membership and PLC: 10.3%

    I request other members who have recieved the ST demand to please mention how much ST is being demanded by other builders?

    -Arpit


    Arpit, Almost same figure told by Mahagun to me. Although I do not remember exact figure but Car parking was not included in service tax.
    I paid my 30% installment after July 1st. I enquired about serivce tax then their executive told that Mahagun is not charging yet and waiting for more information from government.

    Is any builder offering any other opton like if someone paying through own sources then can we write cheque dated June 30th and get receipt of that date ?
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  • How much Service Tax has been demanded by your builder?

    Whereas I know about the service tax is that all the flats booked after Ist July falls in this category others are exempted from service tax. Lets wait n watch whose call is next....
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  • AFAIK Lotus Boulevard (3C) has issued new payment notes in July/August... no Service Tax.. a talk with the Customer Care suggested they plan to wait and watch!
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  • What about Ajnara? Have they also demanded service tax? If so, how much?
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  • Service tax should not be different for different builders. As per norms it would beBSP: 2.575%Other chares: 10.3%
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  • One of the LP flat owner received demand note recently, there is no ST imposed.
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  • Originally Posted by vivekagl
    One of the LP flat owner received demand note recently, there is no ST imposed.


    ST for Ajnara Daffodil as per builder is

    BSP including car parking is 2.575 % and all other charges including PLC is 10.2%.

    I think Car parking, there is no ST applicable as such.
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  • What about Lease Rent?
    Are they charging ST on this also?

    yes Car Parking is specifically excluded from ST. Also IFMC should not be taxed.

    Originally Posted by Dhruv Garg
    ST for Ajnara Daffodil as per builder is

    BSP including car parking is 2.575 % and all other charges including PLC is 10.2%.

    I think Car parking, there is no ST applicable as such.
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  • Originally Posted by charming_arpit
    What about Lease Rent?
    Are they charging ST on this also?

    yes Car Parking is specifically excluded from ST. Also IFMC should not be taxed.


    yes...IFMC/IFMS is actually a security deposit and not a payment. hence, should be excluded.

    Lease Rent is a payment to NOIDA authority for land. It is not a "construction service" and hence should be free from service tax.
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  • why not developers in ncr takes similar course of action?

    The Maharashtra Chamber of Housing Industry (MCHI) has said it is hopeful of an early decision on the service tax issue.The second hearing of the High Court writ petition filed by MCHI challenging Service Tax levy on buildings under construction has been deferred to September 8, 2010. “It’s a revenue related matter so we are hoping that early decision should come out,” said Sunil Mantri, president, MCHI, who is also chairman of the Sunil Mantri Group.The MCHI and others through their writ petition had challenged the constitutional validity of the Finance Act 2010, seeking to amend the Finance Act 1994 introducing and explanation to section 65 (105) (zzq) and 65 (105) (zzzh) to introduce the Service Tax concept of ‘Deemed Service’ for any commercial or industrial construction of residential complex done prior to obtaining completion certificate.The court has already given a major reprieve to 550 MCHI developers by granting an interim stay on the matter. “We are happy that High Court has intervened in the matter because somehow we could not convince to the central government and they still have imposed this tax,” he said. Mantri’s contention is that sale of property cannot be constituted as service because it’s clearly covered under Transfer of Property Act which draws stamp duty and registration.MCHI says its other developer members will also be joining their petition so that they can get relief. “This relief is for our parent association of 550 members. We also have various associations at Thane, Vasai-Virar, Panvel and Kalyan-Dombivli who are also submitting undertakings to the court so that can they take response,” said Mantri.The MCHI in its petition had urged the High Court to restrain the respondents (Union of India and others) from any manner taking steps against the members of MCHI in respect of the transactions for constructions, development and sale of immovable property under the various provisions of the Finance Act, 1994 and a new entry as amended by the Finance Act 2010 in any manner.The government had earlier announced that service tax would be levied on 25% of the total value of property as against the earlier 33%, besides increasing the abatement provided to the sector from 67% to 75%. The tax came into effect from July 1, 2010.But the developers say this is ‘unconstitutional and irrational’ to charge service tax which would cause sale price going up by 2.6%. “Any such a levy will increase the cost of the flat and ultimate buyer will have to bear such cost. On the one side National Housing and Habitate Policy 2007 envisages affordable housing for all, the proposal to levy of Service Tax irrespective of any kind of house would run counter to the policy of the government,” Mantri added.In the best interest of investors, if someone from legal background , who is somehow related with delhi highcourt/ allahabad high court , it take similar course of action on behalf of inocent buyers , it would be of great importance.
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