IREF® Real Estate in India - Property Discussion
Revert to old theme

Download our app now !



Reply
1Likes
  • 1 Post By flatons

No service tax to be paid if builder gets the completion certificate
November 19 2012 , 11:24 PM   #1
New Member

Rajved's Avatar
 
Join Date: Nov 2012
Posts: 6
Likes Received: 0
My Mood: Bashful
No service tax to be paid if builder gets the completion certificate

Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law....
otherwise later on after buying the property ... builder will force me to pay the ser tax
November 20 2012 , 12:03 PM   #2
Member

simpleton's Avatar
 
Join Date: Aug 2012
Posts: 75
Likes Received: 8
My Mood: Fine

Quote:
Originally Posted by Rajved
Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law....
otherwise later on after buying the property ... builder will force me to pay the ser tax
Builder is right .Enjoy ...
November 20 2012 , 07:22 PM   #3
Veteran Member

humble_guy's Avatar
 
Join Date: Sep 2011
Posts: 1,156
Likes Received: 464

Quote:
Originally Posted by Rajved
Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law....
otherwise later on after buying the property ... builder will force me to pay the ser tax
You mean "Occupancy certificate" OC?
No service tax if OC has been obtained for the building.
November 20 2012 , 07:32 PM   #4
Veteran Member

fritolay_ps's Avatar
 
Join Date: Mar 2010
Location: Singapore
Posts: 12,752
Likes Received: 1681
My Mood: Amused

+1.

Service tax can not be charged if builder got OC. Even if you buy RTM from builder, no ST applicable
November 20 2012 , 11:17 PM   #5
Member

Abhishek Agg's Avatar
 
Join Date: Jun 2012
Posts: 393
Likes Received: 66
My Mood: Relaxed

Y service tax is not applicable if v buy RTM frm builder?? Do dis mean that no1 will pay service tax on RTM appartments??
June 24 2013 , 11:25 AM   #6
New Member

buyerflat's Avatar
 
Join Date: Jun 2013
Posts: 15
Likes Received: 0
vat and registration of new flat (finished completion)

Hi all,

for ready to occupy properties with completion certificate, there is no liability of service tax.

can the experts guide on VAT and registration amount for the flat

rgds,
June 24 2013 , 03:24 PM   #7
New Member

flatons's Avatar
 
Join Date: Jun 2013
Posts: 3
Likes Received: 1

VAT on Flat purchases in Pune - Explained
On August 6, the state sales tax department issued a circular to developers saying value-added tax (VAT) at the rate of 5% of the value with retrospective effect would be levied on flats, shops and bungalows sold by them between June 20, 2006, and March 31, 2010.
1. What is the effective date from which the VAT will be applicable for sale of under constructed flat? -
Ans: The VAT is payable from the date of amendment i.e. 20 June, 2006.
2. On what type of contracts the VAT is payable?
Ans: VAT is payable in respect of sale of under construction flat.
3. Whether VAT is payable on the sale of completed flat?
Ans: VAT is not payable if a completed flat is sold by the developer
4. So, who has to pay VAT? The flat buyer or developer?
Ans:The liability to pay VAT is on the developer. But, developers are creating a perception that the buyer has to pay the tax by saying it will add burden.
5.Why are there different slots of taxes for those who have bought flats between June 20, 2006, and June 20, 2010, and for those after June 2010?
Ans: It is the government’s decision. Moreover, builders themselves had agreed to pay 1% VAT after April 2010. The decision to charge 5% VAT was taken earlier. In fact, it will reduce to 2%-2.5% as per the norms. That benefit the developer has pass on to buyers by choosing a lower slot of tax.
6. What is the effective date from which VAT will be applicable for the sale of an under-construction flat?
Ans: VAT is payable from June 20, 2006
7.On what type of construction is VAT payable?
Ans: It is payable in respect of sale of under-construction flats. It is not applicable to ready possession. People who have bought a flat in re-sale don’t have to pay VAT.
8.Who has to pay VAT, if a developer has not told the buyer about it during the purchase post-2006?
Ans: The developer has to pay the VAT. The developer should make a clear note of VAT in the purchase agreement, if the clause is missing, the developer will be liable to pay it.
9.If the agreement to sell a flat was executed before June 20, 2006, the building was under-construction and possession was given after June 20, 2006, will VAT will applicable?
Ans: Yes, VAT will be applicable. It will be levied on value received or receivable on June 20, 2006.
vaibav123 likes this.
June 24 2013 , 05:49 PM   #8
Veteran Member

vaibav123's Avatar
 
Join Date: Jun 2011
Location: Mumbai
Posts: 5,391
Likes Received: 1608
My Mood: Cheerful
No service tax/VAT ad by builder

Ad0121401This should clarify that flats can be sold without ST/VAT if it is ready possession.
(This ad is only for example and I make no personal recommendations about this project.)
June 24 2013 , 09:46 PM   #9
Member

garibaadmi's Avatar
 
Join Date: Nov 2012
Posts: 303
Likes Received: 56

does this mean another advantage of RTM property compare to under construction? as service tax is quite big amount (5%).
July 8 2013 , 07:40 PM   #10
New Member

hellohello's Avatar
 
Join Date: Jul 2013
Posts: 2
Likes Received: 0

A Property is under construction and part payment of total cost of flat is already paid. stamp duty & registration was done on 31 march 2010. property is still under construction after 31 march 2010 till date.
in this case is VAT liable to be paid only for payments made before 31 march 2010 OR VAT will be charged on full sale amount ?
Choose theme from here -
LinkBack
LinkBack URL LinkBack URL
About LinkBacks About LinkBacks