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Archive for the ‘Service Tax’ Category

Will I become party to evasion of stamp duty?

Posted in Bank, Builder, Buy Real Estate, Capital gains, citizen of India, India, Indian Property, Indian Real Estate, Loan, Possession, Premium, Property Registration, Property Tax receipt, Real Estate, Residential Property, Sale Deed, Sale of Properties, Sales Tax, Service Tax, VAT, tagged , , , , , , , , , , , , on October 24, 2009| Leave a Comment »

Question asked by Anonymous:

Hi I have a question to ask. I bought a house from Builder in Hyderabad in August 2006. The agreement of sale was for 33 lakhs. The registry was done at a lower cost 18 lakhs in august 2006 itself. The flat was under construction that time. I also took a loan of 27 lakhs from the bank for it. Now I am selling the house for 62 lakhs. The buyer is taking over my loan. The bank will give me a difference between loan amount sanctioned and selling price i.e. 30 lacs (Cheque) and the buyer will give me 5 lacs. So in total I am getting 35 lakhs in my account. Now the questions are:

1. The Buyer wants to get the registry of the flat done at 25 lacs. How is that possible as he is giving everything in white? How will I explain to income tax authorities as to where this 35 lac came from when I sold the house for 25 lacs (as per the registry) and where did I get the money (27 lacs) for prepayment of loan. Will I become party to evasion of stamp duty in this case? (There are two agreements, one is agreement of sale which shows the correct price on which the bank finances and the other is the sale deed which shows the amount in the registry and is registered)

2. What documents do IT authorities refer when calculating Capital Gains?

3. The builder is the agent through which I am reselling the flat. And I am paying him a commission of 100/- sq. ft. Now, I got to know that he is fooling the new customer by collecting service tax and VAT from him which is not applicable on Resale Flat. And he will keep that amount with him. Now the question is if the new customer some day knows that Service Tax and VAT was collected from him and is not applicable then can I be in trouble as the builder is just the agent, I am the Seller of the flat? What should I do?

Thanks in advance

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Can A Builder Ask For VAT And Service Tax Even If He Didn’t Mention About Them At The Time Of Sale?

Posted in atoneplace.com, Bangalore, banglore, Bank, Builder, Buy Real Estate, citizen of India, India, Indian Property, Indian Real Estate, Karnataka, legal, Loan, Possession, Property Registration, Real Estate, Real estate legal india atOnePlace.com, Residential Property, Sale of Properties, Service Tax on March 5, 2009| Leave a Comment »

Question asked by Mr. Amrendra Singh from Bangalore:
Hi I came to know about u from some of my friends.
Now the problem I am facing is as below.
1. I had bought a flat in Bangalore from the builder “UKN Esparanza “ some 3 months before and at the same time we have applied for the loan from IDBI bank. Now we have made all the payments towards the apartment including the deposits and other things and only the registration is pending.
2. Recently they have sent a demand lettter to pay the registration cost and included Vat and service tax with that. Though at the time of booking of the flat they have confirmed us that there won’t be any VAT and service tax charges.
3. I understand that there is a clause in the sale agreement which says that any taxes levied by govt. at the time of registration has to be paid by the customer, but they have not mentioned anything towards the VAT and the service tax on the breakup latter provided and the bank has also funded based on the breakup letter.
4. Now since the Vat and the service tax levied is in tune of 3 L, I am unable to pay the same.
Need your assistance in understanding that how we can handle the situation. As these charges were never been discussed at the time of the sale, how can a builder ask fr the same now.
Anticipating your fast reply in the regard.
Thanks & Regards
Amrendra Singh

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How much VAT should be paid?

Posted in Abatement, atoneplace.com, banglore, India, Indian Property, Indian Real Estate, Karnataka, Property Registration, Real Estate, Service Tax, VAT on February 20, 2008| 3 Comments »

Question asked by Mr Moorthi Subramaniyan from Bangalore:

Vatsala,
Hi, I am Moorthi, recently I got registered my flat in a small apartment (it has 12 flats) in Bangalore.
My agreement with builder is Rs. 9L for land cost & Rs. 21L for construction (including electricity, water, registration etc).
My question is, How much VAT I need to pay (based on 4%)? Can you help me on this?
Regards
Mr. Moorthi Subramaniyan, Bangalore

Sales and Service tax…Legal Help please!

Posted in India, Indian Real Estate, legal, Sales Tax, Service Tax on January 8, 2008| 14 Comments »

Question asked by Rajesh Padmanabhan from Los Angles, California:
Hello Vatsala Madam,
My name is Rajesh Padmanabhan, I’m basically from chennai and I’m currently living in Los Angeles as an NRI.
I currently in need of a Legal consultation and support from a Real Estate expert lawyer in India who could help us with our current situation.
 
Myself Rajesh Padmanabhan, my brother Mohan Padmanabhan who too lives here in CA are and our Mother Meera Padmanabhan who is living in chennai have bought individual homes in a Gated community in chennai outskirts, the gated community is called PARSN’s  “RENASCENCE” and it has been promoted by
 
Parsn Urban Development Ltd.
129 Parsn Villa, Luz Church Rd., Chennai, , India
()4424991734, 4424995988 fax, http://www.parsn.com
 
The size of the land of each of this three individual house is varying in size from 2200 sqft – 3000 sqft approx. After registering the land from the promoter Parsn to our individual names in early 2006 through our PoA and then we singed a construction agreement with the promoter to build and deliver the house to us. We have financed all the three houses through housing loans.
 
The builder is now close to handing over the possession of the properties and there are two  issues at this point.
 
1) There has been around 3-4 Lakhs that’s been collected by the promoter for each of these properties towards Sales & Service Taxes. This community development at the current phase  has 40 plus individual homes and 20 plus apartments in two or three separate blocks. The issue I have here are:

I had already paid most of the S&S taxes to them, As per my interpretation of the recent ruling  from tax department in late 2007, the buyer is not liable for Sales & Service Taxes. When I asked them about this they said it does not apply to them and I’m still responsible for all the service taxes.When I requested them to provide me the receipt for the saervice taxes especially ( I came to know they deposit the service tax in bulk and so I requested them for a a copy of their deposit with a break down of service tax against my properties listed in the company letter pad) . They are refusing to give that and asking me to pay the rest of the money if not they will charge 24% interest on balance after 15 days. I’m really terrified and not sure what to do at this point.
 
2) They have sent me a new possession agreement which I was never aware or discussed prior to now and asking us to sing it before taking the possession. I don’t want to enter into any agreement at this point as I’m not obligated to and for which I have not agreed before. I’m attaching you the copy of the possession agreement that they have sent me and it seems to completely favor the promoter other than for few points.
 
I’m really puzzled and shocked at this situation and kindly request you take me as your client and help me out.
Please let me know how can I futher reach your office and engage your office in helping me with this issue.
Thanks
Rajesh Padmanabhan

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Is the customer liable to pay service tax according to the latest rule by the Government of India?

Posted in banglore, Buy Real Estate, India, Indian Property, Indian Real Estate, legal, Possession, Property Registration, Real Estate, Registration, Sale Deed, Sales Tax, Service Tax, Tax on January 7, 2008| 2 Comments »

Question asked by Divya k c from BangaloreUS:

Respected Mam,
My name is Divya k c, I’m basically from Kerala and I’m currently living in Bangalore. I am currently in need of a Legal consultation and support from a Real Estate expert lawyer in India who could help us with our current situation.
Myself Divya k c, my Husband Sinoj Nair who too lives here in Bangalore have bought an Appartment in Bangalore, from the Multi Group Builders.
The size of the land is 1350 sqft approximately .After registering the appartment to our individual names in late 2007 ,we singed a construction agreement with the promoter to build and deliver the house to us. We have financed the appartment through housing loans.
The builder is now close to handing over the possession of the properties and there is one issue at this point.
1) There has been around 3-4 Lakhs that’s been collected by the promoter for each of these properties towards Sales & Service Taxes. This community development at the current phase has 35 plus apartments in two or three separate blocks.

a) I had already paid most of the S&S taxes to them, As per my interpretation of the recent ruling from tax department in late 2007, the buyer is not liable for Sales & Service Taxes. When I asked them about this they said it does not apply to them and I’m still responsible for all the service taxes.So could you please help us in clarifying the follwing points.

2)Are we liable to pay serivce tax according to the latest rule.If yes how much percent?

I’m really puzzled and shocked at this situation and kindly request you take me as your client and help me out.
Please let me know how can I futher reach your office and engage your office in helping me with this issue.

Thanks in advance,
Kind Regards,
Divya, Bangalore

Whether the Service tax and VAT are applicable to the customer or the developer?

Posted in atoneplace.com, Buy Real Estate, India, Indian Property, Indian Real Estate, legal, Property Registration, Real Estate, Registration, Service Tax, VAT on December 10, 2007| Leave a Comment »

Question asked by Mr Rahul Saraswat from US:

I booked a flat 18 months back. The flat is now ready for possession; I need to do registration of the flat. Can you please suggest whether the Service tax and VAT are applicable to me? Do i need to pay service tax to the builder? There are 56 flats in this complex.
Mr. Rahul Saraswat, USA