• Mar
  • 06
  • 2010

Book under construction flat before July 2010 to avoid 3.30% Service tax on Agreement Value

Those looking to buy a house would do well to book one before July, when the new service tax levy on construction service will come into effect. The cost of flats will go up 3.3% of the total purchase consideration once service tax begins to be levied on construction.
The government is considering exempting from tax flats booked before the notification of the expanded construction service, a finance ministry official told  “There is a case for giving relief to buyers who booked their houses before the service is notified… We are examining it,” he said.

So, a buyer who has booked a flat but will get possession only after the notification of the new service need not worry. A clarification to this effect may be issued when the tax is notified after the passage of the finance bill, he said.

The Union Budget proposes to expand the definition of construction service and levy tax on houses under construction as well. The new rule, which will come into effect when Parliament approves the budget, says service tax would be imposed if payments were made before the completion of construction.

Realty companies typically sell property before they begin construction and fear that the move will hit the sector hard as it would lead to a rise in home prices and depress demand. “The government must reconsider its decision to impose service tax on under-construction housing as the real estate industry is already paying 14-16% as indirect taxes. The current move will make affordable housing unaffordable in the future,” said the DLF spokesperson.

The government plans to include charges such as development fee, parking fee and premium location charges usually paid at the time of completion of construction in the base price. Only 33% of the base price of the flat will be chargeable to service tax levied at the rate of 10%, taking the effective tax to 3.3%.

“Since an amendment has been made in an existing service already under tax net, there are diverse views whether this will be operative from a specific date after notification or treated as a clarificatory amendment roping in construction-linked payment plans of houses under construction,” said Anil Kumar, CEO and deputy managing director, Ansal API. If it is to be operative from a prospective date, booking a house in the next 3-4 months may result in savings of up to 4% for a customer, he added.

However, the government remains firm on levying the tax. Revenue secretary Sunil Mitra said the proposal would not hike prices by more than 3.5%, an increase that could be afforded by the customers.

“Construction is a service. As a service, there is no reason why it should not be taxed,” he said. “It is only 3% or 3.5% that gets added up (for the buyer),” Mr Mitra added.


78 Responses to “Book under construction flat before July 2010 to avoid 3.30% Service tax on Agreement Value”

  1. Rajendra says:

    I have booked my Dupex house on 10-04-12 cost rs.1781000 inclusive all
    I got register in court (Land sale deed )completed house construction before( Dustavej)n 14/05/12
    My question is I am Liable to pay service tax 3.09 % on total amount paid to builder

  2. sophi says:

    Dear sir,
    I HV book a house in 2009, the project is going to get ready now(2014-15). MY builder us asking for service tax. Is service tax applicable for my case. Pls give me proper detail.

  3. S D Kamble says:

    Sir,
    I have purchased a flat in Kharghar,Navi Mumbai.My registration has been done on 9 January 2010 with agreement value 25 Lakh .Builder has send a letter of 5 % VAT i.e.1.25 Lakh.He refused to show us VAT breakup and told us he had charged us on agreement value i.e. 5 %.All our apartment residents refused to pay him. But he has send us a legal notice that we have to pay 1.75 Lakh within 15 days for not paying VAT,other wise legal action will be taken .According to him we have signed the agreement which include that “Any VAT in future will paid by the buyers”,On that basis builder is demanding VAT with penalty.
    So Plz Help us.

  4. Shobhit says:

    Hi,

    I got a quick question, A quick search reveals different answers from different forum

    My question is i bought an under construction apartment in April 2010, I paid about Rs 5 Lakhs before 1 July 2010, Now apartment is ready for possession(Completion certificate of an Apartment should be 2012) , My question is whether i need to pay service Tax on entire amount or have to pay after deducting 5 Lakh?

    Currently i have to pay Rs 80000 as a service Tax however if i deduct Rs 5lakh from total Cost of Apartment(Nearly 40 lakh) i would save approx Rs 10000.Please confirm if i have to pay Service Tax(Approx 4.2 %) on Total value of an apartment or after deducting Money which was paid before 1 July 2010?

    Regards

  5. Ramesh Chandra Senapati says:

    I have booked a flat on April 2012 which is a near completion stage at a tot. cost of Rs 36L. Builder asking me for paying service tax of about Rs.91000/- immediately. When should I pay it. Is it at the time of registration or before registration. If builder delays to pay this tax to Gov. What could I do? Please give me sugession. ……. R C Senapati

  6. vijay says:

    I come to know that service tax is not applicable to OC flat, please confirm and also provide any supporting document, reference please.

  7. manish singh says:

    Dear ,

    Goverment killed the middle man in 5 to 10 years . These middle man alwyas vote for goverment and timely give the tax , so also they charge all kind of taxes only middle man ,,, for middle man 3.5% is also very very big ampount … as per me they should mention above 50-70 lacks purchase only these 3./5 % applicalbe for investing 50-70 lascks person 3.5 % is not worth but for middle man is 3.5% is very big amount and me my three month salary ,,now have goverment run my family three month if i pay these 3.5% tax ..GOVErment sdhould give 6-10 month time to purchaser to arrange this aomunt and pay the govement

  8. Sachin says:

    Hi,
    I did registration of my flat before 31st March 2010. I paid Rs75000 on 9th May 2010 and remaining amount Rs.60500 after July 2010. Now builder is asking for service tax on total Rs.135500 with the rate of 2.58% i.e.3496. Also they say if i pay after 31st Mar 2012 the service tax would be 3.10%.
    Please suggest weather i will be liable to pay the tax as i did registration before 31st March 2010. Also if i have to pay then according to circular service tax will applicable from 1st July 2010 so i paid Rs.75000 before that and remaining amount Rs.60500 in 2011.
    Please advice me.

    Thanks in advance.  
    Sachin

  9. Hello,
    I have booked and registered a flat in dec 2010. Now builder has given me a letter demanding vat and service tax with interest stating that govt has asked for the same. I have never been asked before that. Should I pay interest to government

  10. vishwa bhooshan nath sharma says:

    hello i have booked my flat on may 2009 @ agreement on 1 sep 2009 for Rs 982000 in badlapur mohan tulsi vihar . I possess my flat on 2 april 2011.How much service tax @ VAT imposed me. The builder demanding me full service tax @ VAT. pls suggest what i do. mob no 9699468117

  11. Bharat Santhalia says:

    hello,

    I need some clarification about these taxes if you can guide me.
    I had booked one flat on 5th June2009  for which I have to pay75% with 2 years and rest of the amount at time of possession. I’m going for 80% loan.
    Now could you guide me that when I have to pay for service tax/vat/stamp duty or if any other taxes.
    And also if having loan also involves any taxes or not??

    Regards

  12. Puneet says:

    Hi Team

    I need some clarification about these taxes if you can guide me.
    I had booked one flat on 20th January for which I have to pay 95% within month and rest of the amount at time of possession. I’m going for 80% loan.
    Now could you guide me that when I have to pay for service tax/vat/stamp duty or if any other taxes.
    And also if having loan also involves any taxes or not??

    Regards
    Puneet

  13. Shankar says:

    Dear Respected Sir,

    Can you please help me in providing your valuable inputs.

    This is regarding the extra charges being imposed by the builder during registration.
    I have purchased a FLAT and agreement was done in Jan 2010 with Possesion Date of Dec 2010.

    My agreement says only to pay 49,11,500/ + (Flat Charges + Maintenance Charges) and 2,00,000/-( Registration+Stamp Duty+Legal Charges) . Now I am asking for registration of the flat and the builder is asking to pay extra Govt. Levies@ 6.5% of 49,11,500 (i.e 3,19,248/-) which is not a part of my agreement. Also he is charging me the late payment
    charges of 2,06,628/- which is because disbursement got delayed from BANK. The builder did not send any
    demand letter to the bank to disburse the amount and there was no progress in the construction.The disbursement was on date basis and not on SLAB completion. The builder planned the dates in agreement in such a way that he knew the Bank processing would delay in disbursing the payment and he is now charging me…Till date he didnt turned up
    saying i need to do the late payment charges but now he is asking me.

    My Agreement was done – Jan, 2010
    Actual Flat Possession Date according to agreement is – Dec,2010 (But Still Not Given)
    Current Situation – Not yet giving Possession Date and demanding more money
    Amount Disbursed – All except 2 L for registration.

    Answer my questions inline to my commments please…

    Answer my questions inline to my commments please…

    Please let me know

    1. What are 6.5% charges? Builder says the 6.5% charges are Govt Levi charges it seems and this charges are separate from the Registration+Stamp Duty+Legal Charges. This figure is NOT at all there in my agreement

    2. Do i need to pay VAT and Service Tax? as i did my agreement in Jan 2010? if so what is the Percentage?

    3. Also should I pay delay charges as there is a delay from builder side as he is not giving possession till date? I have a clause saying builder will pay Rs. 5/sq feet if delayed after Dec 2010. But there isnt any End day mentioned in agreement till what time the delay would be and he hasnt payed anything to me till date.

    4. How much time it would take me to get this legally resolved in karnataka? I heard there are lots of cases pending to be resolved?

    5. He says you happily go to the consumer court there are 12 Lakhs cases pending and it will take years to solve this.

    6. He also says that they have good contacts at builder level…My question is INDIA so corrutped..come on…please help me in getting the right solution..

    7. I cant even concentrate in my personal life as this is the only
    thig i have made in my life and i am not getting this.

    8. Does builder has right to CANCEL agreement?

    9. Should i go to Lokayukta?will Lokayutka help me OR Consumer Court Help me?

    10. He is not Even responding to emails when i Asked about the 6.5% Govt levis charges, as he keeps quiet..

    Please anyone can share me the mail id such that i can send my
    documents and you can verify and provide me the suggestion…

    Answer my questions inline to my commments please…

  14. Rajkumar Subramani says:

    Dear Sir,
    Is this VAT & service tax has been applied or still the final decision is pending to implement it or when final will come to known about s tax and vat.
    i had made the registeration on the month of Feb 2011.
    The builder is asking me to pay the service & Vat tax kindly suggest the property is at panvel.
    please reply as i have to get the possession letter, the builder is not giving me

  15. Vaibhav says:

    Hello,
    I booked my flat in Dec 2009 at price 17 lacs. I paid him 70% loan amount before 31 mar 2010 and now I am pay remaining amount 5.96 lacs. Do I need to pay Service Tax if yes , is that on total amount of Flat sell price or remaining amount loan which is I am going to pay him.

    Please advice.

    thanks

  16. Jay Mehta says:

    Dear Sir,
    I am going to get possession of flat by end of July-2011 in Ahmedabad, Gujarat. Now Builder is asking for service tax.
    Who suppose to pay the service tax builder or me? and what is applicable percentage in Ahmedabad?
    Please reply.
    Thanks
    Jay Mehta

  17. Sham Aher says:

    sir,
    I had book flat before December 2009 and i have paid the satamp duty and Registration Fees before 31March,2010.

    The builder is asking now for servicetax. will I have to paid the servicetax? & how much ?

    Thanks & Regards,
    Sham Aher

  18. Shukracharya Chavan says:

    dear sir,
    I get the possession of flat before 31jully 2011.
    bulider asking for sevice tax rate 3.5%
    who will pay the service tax builder or me?
    and what is its percentage in jully2011.
    service tax rule is implemented or not by govt. of india?
    Please reply.
    Thanks
    Shukracharya.

  19. Yusuf Patel says:

    i have made full payment of the flat purchase on 30th November 2009, the building is just getting ready and will get the possesion in December 2011,
    secondly the satamp duty and Registration will take place this month June 2011
    should i have to pay VAT and Sevice Tax as Builder is demanding, if yes what rate we will have to pay the same ( VAT + Service Tax)

  20. Shankarsan Parida says:

    I had booked a flate in cost Rs. 925000/- on date 12/08/2009. I had paid Rs.100000/- to builder as booking ammount.the payment of rest ammount is going on in instalment through bank loan.the flate is now under construction.The builder is asking now for servicetax. will I have to paid the servicetax? If yes who wil paid the tax & how much ?
    Please help me by explanig in detail.

  21. jayesh thakkar says:

    sir i have book flat before july 2010 an agreement to sale before july 2010 cost of flat Rs 2000000/- made payment before july first rs 200000/ after 1st july 1800000 is the remaining amout which i pay after 1st july is applicable for service tax of 2.75 %.

  22. Vijay says:

    i booked flat on 19th July 2010 in Noida. my home loan has been approved from Axis bank now bank has been asking me to depoist service tax. do i have to deposit service tax or builder. Is there any rule to deposit service tax. please clarify.

    thanks

  23. charu says:

    Is this VAT & service tax has been applied or still the final decision is pending to implement it or when final will come to known about s tax and vat.

  24. Deepak says:

    Hi,

    I have bought a flat@16,00,000 and made full payment (400,000 my contribution+12,00,000 home loan) in October 2011 as building was completed constructed. I am yet to receive the possession (it is march now). Will I be liable to pay the service tax as I have made the full payment after completion of all the slabs.

    Regards,

    Deepak Sharma

  25. Anonymous says:

    you need to pay service tax on 4 lakhs

  26. Sheeja says:

    My friend Booked a flat on august 2008 for 26,00,000 including parking charges. But now during the time of registration the builders are asking serivce tax @ 4.12% and in addition to vat 3.03% . Sir please help me how much will all these charges including Registration(5% total value) and other charges will come up to . There is no one to guide her regarding this. Please help us from such builder by providing the correct information. The amount of these charges were not mentioned in the agreement also. As you have mentioned above was this VAT less than 3.3% before July 2010

  27. Ashok Kumar says:

    I booked a flat in Sept 2009 for 21 lakhs and paid 8 lakhs to builder in the month of Feb 2010 and 4 Lakhs in the month of Sept 2010, Now could you please assist, do i need to pay service tax, and on how much amount i have to pay the service tax?

  28. SS says:

    Is this VAT & service tax has been applied or still the final decision is pending to implement it? if it is applicable, are the financial institutions / Banks are willing to pay this amount within sanctioned loan amount limit or even as an addtional component to be paid from customer?

    Thanks

  29. Suman Agrawal says:

    Hi,
    My Client purchased a Flat & get registered it with Sub Registrar,Raipur. Now Builder charged Service Tax,Vat on it. My query regarding it that it is double taxation.There are 3 parts in a flat- 1) Part Value of Land 2) Material Value ( Metal,Sand,Bricks,cement, Tiles, Switches,granites,Sanitary Fittings,Door,Grills,Steel etc 3) Labour Payment. Sub Registar to take stamp duty on land only. Vat to be charged on Material & Service Tax on Labour payment. Why registrar is taking stamp duty on entire value of flat. Hence no service tax & Vat to be charged on flat. Also as per vat act ,vat to be charged on movable property .i.e. on goods only & not on immovable property. So please clarify me about it.

  30. Sagar S says:

    Dear Sir,
    I have booked my flat in March 2010 (Pune),agreement date 18-Marc-2010, However my flat agreement cost is Rs.2630156/-+75000 MSEB+69360 Society Maint=Rs.27,74,516 out of that i have paid Rs.100000/- booking Amount on dated 10-Marc-2010 and remaining Amount i have paid Rs.2,56,440 on Dated:2-Jul-2010 , Rs.1879193 on dated:21-Jul-2010 and amount of Rs.263076/- on dated 23-Dec-2010 and reaming Amount is Rs.275807/- which i will pay this month end, Now builder is asking me for Service tax 2.58% on value which i have paid after 1st of July 2010. Could you please tell me is it necessary to pay Service tax on Amount paid after 1st of July 2010? Almost all work is completed and Builder will give possession January 2011.
    Please reply…..

    Sagar S

  31. sunil Talla says:

    Hi,

    I booked a flat on Sep 2009 for 21 lakhs and paid 8 lakhs to builder in the month of Feb 2010 and remaining full amount in the month of Sept 2010, now could you pls assist me how much is the service tax and VAT is applicable. please suggest

    Thanks,
    Sunil.

  32. V V BHARADWAJ says:

    Sir, i had booked a flat at Patna centre in the year2008.I had already paid the majority amt.(almost 80 %)in the year 2009. Now i have paid the remaining 20% amt in the month of Dec.2010. The construction work is almost completed. Registration of the flat by the builder in my name, at Registrar office,Patna was done on 1/12/2010. Now the builder is insisting for payment of servie tax.Pl clarify:
    Whether service tax is to be paid by me?
    If it is payable, please specify on which amt.(Either on 100 % or on 80 % or on 20%).
    Regards, V V Bharadwaj,State Bank Of India,Region-1,Administrative Office, Patna

  33. Naval says:

    Sir,
    I booked a flat in Jan 2010 for a aggreement value of Rs. 38 Lacs. I already paid 10 Lacs amount before Jul 2010. COnstrunction for this has been started in Oct 2010. Now Please tell me on what amount I need to pay service tax.

    Regards
    Naval

  34. Nitesh Chowhan says:

    Dear Sir, I have Booked my Flat on March 2010 & Stam Duty & registration is done on April 2010.My flat pocession is on December 2010 & balance 15 lacks payement is done after 10 July 2010.So pls guide me that still I have to pay service tax.

  35. ritesh says:

    dear sir
    i book flat in aug 2009 & got register on dec 2009 & i m getting possession in jan 2011 so i have to pay the tax or not

  36. Amit Verma says:

    Hi – I have dove the Sale and Construction Agreement in month of March 2010. My Builder still expecting Service Tax from my side. I don’t understand why do I pay Service tax if I have booked Flat before “JULY 2010″?
    I read an article that saying “Book under construction flat before July 2010 to avoid 3.30% service tax on Agreement value”
    Please help me…..

  37. Vijay Itagi says:

    I have purchased a flat in chinchwad pune in aug2010. at the time of buying there was no descussion made on service tax from builder. now he is asking post dated check for service tax. kindly guide me what to do?

  38. santosh kumar tanti says:

    I booked a flat on september 2010 and payment made on march 2010 through financial institution by taking a loan.hence guide me regarding applicability of service tax from 01 july 2010.
    Thanking you

  39. Ranjan says:

    I have purchased a house in Pune. After purchasing I also paid service tax & VAT amount (Around Rs64000/-) to builder.
    How I will be confirmed whether builder will deposit or not?
    Govt. should clear all rules before implementaing new rules.
    Request for a suitable reply.
    Mob. No. – 099 7000 6493

  40. GK Gupta says:

    sir, I have booked the flat on dec. 2009 which is Token amount of Rs. 21000/- and my agreement on 10 th march 2010 will i be charged service tax or not? flat r under construction and possetion on april 2012

  41. Firoze Mistry says:

    Dear Sir.

    I have booked a flat in Oct 2009, the registration was completed in April 2010.

    However since Oct 2009 I have paid 4 installments, the balance 5 are still to be paid. Do the balance 5 installments carry a Service Tax since the registration was completed in April 2010.

  42. Rahul says:

    Tax,Tax,Tax and Tax how many taxes are we supposed to pay to these ruthless,shamless & corrupt Goverment . Actually I can understnad incompetency doesn’t leave much of options so there has to be some ways & means to collect hard earened money out of the customers.
    Plz carry on till a common man doesn’t commit suicide or kill someone who comes out with these brilliant & dynamic ideas
    God saves us from these Ruthless , heartless demons & Monsters

  43. More says:

    I have purchased flat in apr 2010 and it is under construction. Possesion will be in Feb 2011. The registration was completed in apr. I want to know that whether service tax will be applicable to me as well.

  44. Visharad says:

    Sunil,
    You need to pay ST on payments made after 1st July’2010.Its only on remaining agreement value. Also right now there is stay by Mumbai High court. So will suggest not pay the ST till final decision comes.

  45. Sunil Tajane says:

    Dear Sir.
    I’ve purchased a flat in Pune and my agreement amt is Rs. 4500000. The agreement has been made on 09 june 2010. Almost 50% of the payment has been done by me. Now the builder is asking me to make the payment of service tax and VAT. Can you please mention how much service Tax I need to Pay?

  46. Mahesh Shinde says:

    Dear Sir,

    i had booked flat in Nov 2009 & that time i had paid 15% amount as a booking advance after that in last month demand letter receved from builfder & ie charge service tax plz guide it is liabilie to me

    need guidance

  47. gopal says:

    I have booked a flat on 25th May 2010.My property is under construction and the possession is due by September 2010.
    The agreement value of the property is of 19.00 Lac. I paid 51000 and 1,81,000 in the month of June.

    Now my builder says that I need to pay VAT of 1.5 % on agreement value and service tax of 3.3% on agreement value.
    I have invested all of my money in down payment and rest I took loan from LIC.

    Please help me by providing me information on VAT and SERVICE TAX.
    Kindly suggest me what do I need to do.

  48. asmita says:

    hi,
    i had booked a flat in july2010.
    but builder ask me for more tax service & vatt, can you tell me how much tax more i have to pay.My flat agreement amount is 30lacs.

    Thx
    Asmita

  49. Nalin Parikh says:

    Shall service tax be applicable if duplex is booked by me in Sept. 2009, Registered Banakhat executed in June 2010 ; Sale deed likely to be executed in Dec. 2010 and possession likely in Jan. 2011.

  50. I have booked flat in Jan2009,& still flat is underconstruction,The 10% amt is due to me,Wheather the service tax will be applicable on remaining amt ? how much it will be?

  51. arun says:

    Sir, i booked the underconstrution flat 21 feb2010 registered the same on 11.march 2010 and taken home loan on 31 April2010.part paymenti have given and further from home loan.i will get the flat in Dec2011.stagewise payment will pay from the loan.
    So will I have to pay tax for the part payment. Please respond

  52. Deepak Jethani says:

    When english ruled over india, they imposed tax on just salt, and our mahatma decided to do a dandi march, in this modern world we need another Gandhi, Evereything is now taxable. The air which we breathe will also come under tax in next few years, there will be a meter on everyone’s face which will measure the oxygen and air which we breathe, and we will have to pay for that air, not only that the carbon di oxide which we give out in breathing process will also be taxable.

    Jaago Grahak Jaago

  53. MAHESH says:

    MAHESH PATEL I booked flat JANUARY 2010,i had given 2,20,000 by cheque to builder, but i will do my agreement on 3RD july.
    It will comes under service tax & VAT Please clarify to me.IF YES THEN HOW MUCH PERCENTAGE I HAVE TO PAY? IT IS ON AGREEMENT VALUE OR WHAT?

    Read more: http://www.taxguru.in/service-tax/book-under-construction-flat-before-july-2010-to-avoid-3-30-service-tax-on-agreement-value.html#comment-71338#ixzz0tFouEBNk

  54. dipali says:

    Dear all,
    I had purchased a new flat in kothrud area on april 2009. I want to know about service tax rules.
    please clarify.

  55. Vikas says:

    I booked flat may 2010,i had given 150000 by cheque to builder, but i will do my agreement on 15th july.
    It will comes under service tax & VAT Please clarify to me.

  56. v swaminathan says:

    To correct and be read – ‘Post of March 6′ (not 13th March)

    vswaminathan

  57. v swaminathan says:

    It is mind boggling and quite confusing as to why this Post of 13th March again figures in the latest update. Though, so far as one is aware,the then indicated exemption of bookings before the effective date (since announced – 1st July 2010) from service taz seems to have been given the go-bye.

    I am open to correction should my above understanding be incorrect!

    vswaminathan

  58. Anil says:

    In today’s scenario Govt is playing a bias role. On one hand they are saying of introducing low cost housing and on the other hand they are leving such taxes viz., VAT & Service Tax. Why don’t they look at other avenues of raising the fund for the bankrupt Govt. Such as reducing their own exps or introducing of Solar energy in all Govt. depts in order to reduce electricity exps.

  59. Vijay Itagi says:

    I have booked a flat in 20 June 2010 with Amount of Rs. 1,00,000/-Kindly clarify whether i will be charged service tax & vat?

  60. Dipesh Choube says:

    I have booked the property on 27th Jan 2010 and had Agreement on 17th March,2010.will i be charged service tax or not on the remaining flat amount?

  61. Srinivas says:

    Sir, I have booked a flat in Hyderabad, Andhra Pradesh which is under construction and registered the same on 29th December 2008. I don’t know exactly whether the builder has obtained the possession certificate from the Government authorities or not. But, I have released full amount and my flat is ready to occupy. My question is shall i pay the Service Tax which is newly introduced by the CBEC.

  62. sucheta says:

    I have booked the property on 28th june 2010 which is Token amount of Rs. 45000/- will i be charged service tax or not?

  63. Srikanth N says:

    Has the new Service tax on flat purchases been notified in CBEC?

  64. Akash says:

    Only queries raised here, but no one has answered for any of these queries.

  65. ashish majumdar says:

    I had booked a flat measuring 1033 sq ft in 2006 and the builder now says that i have to pay service tax. It will be refunded if not applicable. The flat is likely to handed over to me in june/2010. Do i
    need to pay any service tax?

  66. Lanish says:

    I booked a under construction house on Aug 2009 and pocession is by Oct 2010. Do i need to hurry up my registration by paying the complete amount to builder.

  67. Sagar says:

    Hi,

    I have booked a under construction flat in Vasai last week,for which i have already paid the builder the signing amount of 20%. I have also done the franklin & have remove the pay order to make the registration,however the agreement is not yet made by the builder. Since i want to get the registration done fast to avoid service tax i have made the payment by cheque,the builder has give me the receipt for the payment done,however i just want to know when are the service tax going to be Implemented.

    Aside what documents should i ask the builder apart from the receipt since the agreement is yet to be made.

  68. Datta says:

    Service Tax, Stamp duty, registration & Vat impossible for every one.

  69. Poonam Naik says:

    Hi,
    I stay in Mumbai.
    I agree to the fact as all have stated above already….
    Buying a house in Mumbai is a tough task anyways….we have to pinch our stomachs to make our houses…..and the government is further pinching our tummies by doing this additional tax imposing….
    At one end, the government gives free houses to slum dwellers in thousands(they have now increased their carpet area to 269sq.ft), and why would they not when they need their precious votes…..and at other end we people already pay taxes of our hard earned money (apart from income tax, remember that all consumables we buy are mentioned as “INCLUSIVE OF TAXES”, which means that tax is also paid in the consumables we buy)and by a house out of our savings…add to that the (stamp duty, registration)
    What next????? What will be the new type of tax that these ruthless people ( whom we elect ) impose on us…..
    apart from the already hyped flat cost (that is charged not on carpet but on super-builtup), we pay the stamp duty, registration charges and now these….
    Just wonder, if all of these guys who set rules for us follow the rules themselves….do they pay taxes, income taxes too???

    — Ar. Poonam Naik

  70. Shankhadeep Mukherjee says:

    Hi,
    I have booked a flat in Pune, and also registered in feb 2010. There part payment due which I will pay by Home loan. The home loan may take time and may spill 31st march deadline. So will I have to pay tax for the part payment. Please respond

  71. Snehal says:

    Hi,

    I have booked a flat in Pune , having posession on june 2011.
    Want to know, will the date of Agreement will make diferrence in the Service tax to be paid for the Under construction flats.

    Shall I go for Agreement/ Registration before 31st March 2010?

    Agreement value of my flat is 3100000 Rs.

    Can you please mention how much Tax I need to Pay

  72. Anup Krishnankutty says:

    To purchase a FLAT itself is a very tough decision for a MEDIUM SIZE FAMILY. Now, if SERVICE TAX WILL BE LEVIED, then how can a person think about purchasing a house? NO…. SERVICE TAX should not come into effect.

  73. shyam gaur says:

    Immovable property ia a state subject and levying service tax by the centre on flats is unconstitutional and it will only lead to unnecessary litigations.

  74. raju goyal says:

    dear sir, this service tax should be givan effect w.e.f. the date of notification and it should not effect the alred contract execuled

  75. M Agarwal says:

    If construction is a service then the stamp duty should be charged only on the undivided portion of land price. But what we have seen in the past that the buiders have charged service tax and also included constuction cost for stamp duty calculation which is not correct.

  76. Rachana says:

    How many times do they want to tax a particular item and the final burden is obviously on the customer. He has to pay stamp duty, even VAT has to be paid and now this service tax.

  77. Ashish Nasa says:

    The budget says that this is a clarification in existing clause wef 1 Apr 2007. I am expecting house posession in April 2010 where 95% of the payment is made some 6 months back for a house. If you could pls clarify on three things:
    1) If its prospective, will it be applicable from July or April.
    2) When is the final clarification on booking of flat vs possession expected from govt
    3) Suppose its retrospective, I might press builder for early possesion by say 31st March. Can that help in any case

  78. CA R.K.BHALLA says:

    Dear sir

    This service should be given effect w.e.f the date of notification and it should not effect the already contract executed.

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