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Service tax rules on market value of the property
08-Feb-2023 (In Property Law)
My property agreement cost is 23.3 lakh and market value of the same property is 26.6 lakh as mentioned in the agreement. My builder charging me VAT and Service tax on market value...Is it right to pay on market value ? another concern is.....builder told me service tax rule has been changed and now you have to pay 4.5% service tax instead of 3.5 %....please help
If the Flat is constructed you are not required to pay the service tax and a builder cannot charge Value Added Tax (VAT) on transaction for sale of flat effected after he has secured completion certificate for the project from the municipal corporation, the Pune district consumer disputes redressal forum has ruled.
In an order passed on Thursday, a three-member bench of the forum, headed by its president V P Utpat, held city-based construction firm, Kshitij Promoters and Developers in Erandwane, liable for deficiency in service and unfair trade practice for wrongfully collecting 1% VAT from the purchasers of a flat and not returning the same.
The bench, which also comprised members Mohan Patankar and Kshitija Kulkarni, directed the firm and its partners, S P Paranjape and Vinayak D Gokhale, to refund the Rs 70,230 VAT that was collected from complainants Janice D'sa and Leena D'sa within six weeks from the date of order. The firm has also been ordered to pay Rs 20,000 compensation to the complainants towards physical and mental agony.
In an order passed on Thursday, a three-member bench of the forum, headed by its president V P Utpat, held city-based construction firm, Kshitij Promoters and Developers in Erandwane, liable for deficiency in service and unfair trade practice for wrongfully collecting 1% VAT from the purchasers of a flat and not returning the same.
The bench, which also comprised members Mohan Patankar and Kshitija Kulkarni, directed the firm and its partners, S P Paranjape and Vinayak D Gokhale, to refund the Rs 70,230 VAT that was collected from complainants Janice D'sa and Leena D'sa within six weeks from the date of order. The firm has also been ordered to pay Rs 20,000 compensation to the complainants towards physical and mental agony.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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Yes you need to pay service tax @4.5% of the market value as demanded by the builder. There is no question of law.Yes you need to pay service tax @4.5% of the market value as demanded by the builder. There is no question of law.
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Adv. Bharat Pandirao Pawar
Pune | 500+ Answers
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