Search Options
IREF® - Indian Real Estate Forum > Real Estate Open House > Indian Property Laws > Service Tax and Interpretation of "Agreement for Sale" and "Works Agreement"
LinkBack Thread Tools Search this Thread
Old June 25 2009, 04:50 PM   #1
Join Date: Jun 2009
Posts: 329
Likes Received: 24
Likes Given: 2
Default Service Tax and Interpretation of "Agreement for Sale" and "Works Agreement"

Hi All,

Would like to know how builder charge various taxes, namely *Service Tax* and *VAT* in Pune from the experienced owner.

1> Does builder charge Service Tax on "Agreement for Sale". As per "The Central Board of Excise and Customs India" in circular service tax is NOT to be charged on "Agreement for Sale" by builders, when property is under construction.

2> Contrary to the above above circular, I have seen cases that builders are still charging service tax under the premise that, "Agreement for Sale" while the apartment is under construction is construed as "Worker Agreement". And have seen one instance wherein, builder charged service tax about 4% on the agreement value. This is even after the circular is published on Jan 29, 2009. The difference here being, Service tax is valued at 4% instead of 12.5%.

This instance happened in Bangalore, would like to know what is the situation in Pune.

3> How is VAT charged in Maharashtra.

Will appreciate inputs

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Join IREF Now!    
Related Threads
Achievers "Gardenia floors", "Status Enclave Flats and expandable villas" - Sector 49 Faridabad
Registered "agreement of sale" dispute
Mumbai City - The Financial Hub
Please share your opinion about "Blue chip avenue", "silver moon" and "Green Thumb"
Any opinions about "Green Thumb", "Blue Moon" and "Blue chip avenue"

agreement for sale, interpretation, service, tax, works agreement