Some builders like G.K ask for blank cheque for service tax. Govt has passed the circular that no service tax is required. Be informed.

]http://news.helplinelaw.com/0806/buss_noservice.php
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  • Hi realacres/Jitu_Sir,

    Just wanted to understand ST & VAT applicable to me. I've bought a flat and now will be making disbursement (80%-90%, since building is near to completion) to builder in month end.
    How do i calculate applicable ST & VAT tome?
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  • Originally Posted by abhi2509
    Hi realacres/Jitu_Sir,

    Just wanted to understand ST & VAT applicable to me. I've bought a flat and now will be making disbursement (80%-90%, since building is near to completion) to builder in month end.
    How do i calculate applicable ST & VAT tome?

    Dear abhi2509,
    If you had registered your agreement prior to 1st April 2010 then VAT is not applicable and if registered after then you will have to pay 1% of agreement value.
    All payments made after 1st July 2010 will attract 2.575% ST. So in your case disbursement value as well as any own contribution be charged ST extra. Certainly you ( not bank) will have to bear that tax component.
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  • Jitu_Sir,

    Many thanks for the information.
    Actually property is yet to be registered.

    So ST & VAT will be applicable to me is VAT=1% of Agreement Value and ST=2.575% of Agreement Value, correct?
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  • Originally Posted by abhi2509
    Jitu_Sir,

    Many thanks for the information.
    Actually property is yet to be registered.

    So ST & VAT will be applicable to me is VAT=1% of Agreement Value and ST=2.575% of Agreement Value, correct?

    Dear abhi2509,
    You are right. Just remember that if there are any charges taken other than agreement then they will be charged under 10.3% ST.
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  • Originally Posted by Jitu_Sir
    Dear ash7979,
    Since these are indirect taxes charged over the consideration value, buyer needs to pay it separately. We were concerned for the rise in package cost which directly affects our sales. To minimize it upto certain extent we had removed MSEB & Soc charges (1.25L) from 1st July 2010 so the final package cost doesn't affect much.
    Now we are having only 3 heads viz.,
    Agreement value, Taxes(SD+RF+VAT+ST) and Maintenance.


    Hi Jitu_Sir,

    Please let me know if this policy (removing MSEB & Soc charges) is adopted by all the builders or some specific builders.

    Please also let me know where can I get more info about this.

    Thanks
    Sukumar
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  • Originally Posted by sukumar.mohanty
    Hi Jitu_Sir,

    Please let me know if this policy (removing MSEB & Soc charges) is adopted by all the builders or some specific builders.

    Please also let me know where can I get more info about this.

    Thanks
    Sukumar

    Dear Sukumar,
    This is a policy decision taken by us and does not necessarily be adopted by others. More info on this could be available at their respective offices.
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  • Thanks a lot Jitu_Sir for information. This will certainly help me...
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  • Originally Posted by Jitu_Sir
    Dear Sukumar,
    This is a policy decision taken by us and does not necessarily be adopted by others. More info on this could be available at their respective offices.


    Jitu_Sir,

    May I have the privilege to ask which company(builder) do you belong to? If it can not be disclosed here, then I apologize the same. I am just asking this because I want to know which builder(s) has taken this decision, after all it's a question of more than 100k.
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  • Originally Posted by sukumar.mohanty
    Jitu_Sir,

    May I have the privilege to ask which company(builder) do you belong to? If it can not be disclosed here, then I apologize the same. I am just asking this because I want to know which builder(s) has taken this decision, after all it's a question of more than 100k.

    Man, Jitu is partner of Pethkar Projects which are running the project Samrajya at Shivtirthnagar, Kothrud. Check out Samrajya thread for more.
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