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Archive for the ‘Tax’ Category

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

Vatsala’s Answer has been moved to our new site

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Who if anyone is liable for Service tax under construction of complex service ?

Posted in Buy Real Estate, India, Indian Property, Indian Real Estate, Tax on January 4, 2008| 4 Comments »

Question asked by Chetan from Dallas, Texas:

Whether Service tax is liable under construction of complex service [section 65(zzzh)] on builder, promoter, developer or any such person—
(a) Who gets the complex built by engaging the service of a separate contractor, and
(b) Who builds the residential complex on his own by employing direct labour? 

Vatsala’s Answer has been moved to our new site

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Problems with merging of two 1 BHK to one 3 BHK by Builder

Posted in atoneplace.com, Buy Real Estate, FAR, Indian Property, Indian Real Estate, Khata, legal, Loan, New Construction, Real Estate, Registration, Sale Deed, Tax, Transfer on December 13, 2007| 2 Comments »

Question asked by Mr Sanjiv Jain from US:

I booked I have booked one 3 BHK flat in a new construction building and I’ll get possession in 6 months. This Flat has two numbers allocated to this (303+304). I checked with builder about the floor plan as approved by the corporation and found that this 3BHK is actually created by combing two 1 BHK flats. Builder told me that once building construction is over, he will get plan re-approved as per modified structure. According to him, I need to go for only single agreement of purchase and registration/stamp duty.
I want you opinion on this. Should I go for this agreement? Will I get single loan on this property or that will be treated as double home loan even if I go single agreement?
Mr. Sanjiv Jain, USA

Tax on construction of building

Posted in atoneplace.com, Capital gains, Construction, Financial year, India, Indian Property, Indian Real Estate, Mumbai, Partnership Company, Profits, Sale of Properties, Tax on October 18, 2007| Leave a Comment »

Question asked by Mr Wilbur D’Souza from Mumbai:

Hello, Im keen on constructing a building on my own property from which I will be forming a small partnership company. How will the tax be calculated? And what will be the percentage of deduction on the profits? Will appreciate if you could give throw some light on this.
Thank you.
Regards
Mr. Wilbur D’Souza, Mumbai