Announcement

Collapse
No announcement yet.

GST impact if Loan Amount Cheque Deposited to Builder's Account

Collapse
X
Collapse

GST impact if Loan Amount Cheque Deposited to Builder's Account

Last updated: July 9 2017
10 | Posts
1725 | Views
  • Time
  • Show
Clear All
new posts

  • GST impact if Loan Amount Cheque Deposited to Builder's Account

    Hi All,

    Will i have to pay GST if my Home Loan cheque is deposited to builder's account on 30th June 2017 but the amount credited to his account was on 5th July.
    Do i still need to pay GST?

    Regards
    Vrinda D
  • #2

    #2

    Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

    Tricky issue. Builder needs reasonable time to cash that cheque. So if you give cheque on 30 june itself, don't expect builder to cash that cheque on same day. But if you have already reached some agreement and understanding about it, then builder will file your dues as been paid before GST implementation, hence no GST to be paid.

    Comment

    • #3

      #3

      Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

      Thank you for your reply. But i am indeed in this situation. wherein my Builder is informing us that we have do pay GST :-(. Another thing it was a DD and not cheque.
      And it was we, who had went and deposited the DD to builder's account. I have the photo of that receipt.

      Comment

      • #4

        #4

        Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

        As you deposited DD in builder's account on 30th june, then its possibility that payment was processed on same day. You have to find out when DD transaction was actually processed. If DD transaction processed successfully and money debited from your account and credited to builder's account on June 30, then you don't have to pay GST. Anyway, i am not a legal expert. So consult a CA on this issue.

        Comment

        • #5

          #5

          Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

          I don't know if i have to pay so much of taxes for a flat then how can a middle class person own a home. If Govt is expecting everyone to have a home of their own then why such heavy taxes are levied at least for the first home..

          Comment


          • vishalpatil2487
            vishalpatil2487 commented
            Editing a comment
            i appreciate this issue, lots of peoples wont bring their homes only due to much more down payments including heavy taxes.
        • #6

          #6

          Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

          Originally posted by vrinda_23 View Post
          Hi All,

          Will i have to pay GST if my Home Loan cheque is deposited to builder's account on 30th June 2017 but the amount credited to his account was on 5th July.
          Do i still need to pay GST?

          Regards
          Vrinda D

          GST is not applicable in your case.

          It depends on the date of raising the demand by the builder, which was obviously in June or earlier. Also, since you deposited it on 30th june itself, so that date would be considered as the date of payment. In fact, even if you had sent the cheque by post, the date of posting is considered as the date of payment as per Indian laws.

          If you face trouble by the builder, you can write to the GST task force with your details. You would find the details on google.

          Comment


          • vrinda_23
            vrinda_23 commented
            Editing a comment
            Thank your guidance..

          • vaibav123
            vaibav123 commented
            Editing a comment
            Being a DD it makes it all the more simple, because value has been received while making the draft.
        • #7

          #7

          Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

          Does the liability of service tax gets crystallized on demand or payment. If demand is raised before 30th June but payment made in July , then will GST be applicable ?

          Comment

          • #8

            #8

            Re : GST impact if Loan Amount Cheque Deposited to Builder's Account

            Few CA says that we may need to may GST. I am really going mad with this situation

            Comment

            Tags: Ravet
            Have any questions or thoughts about this?
            Working...
            X