Legal Question in Construction Law in India

Q.1) My Flat Booking is in June 2010 and Agreement is in September 2010, Then Can I applicable Service Tax on my property? If YES, then Can Flat Buyer Get Rebit / Refund Amt? How much Flat Owner have to pay? if it is 2.575% / 3.09 % on agreement Value then what about refund amount getting to builder on sergice tax from sales tax department?

Q.2)If Builders is collecting Service Tax Amount from Buyers from year 2006, 2009 or 2010,and Builders is not registered CST Numbers,Then Can Builder collect Service Tax Amount from Buyers now in year 2013 for year 2010 or 2006?

Q.3) If Builders is collecting Service Tax Amount Or Taken Advance CHEQUE Blank Amt & Date from Buyers from year 2010 and Builders is registered CST TIN Numbers year 2012/2013, Then can BUILDER COLLECT/DEPOSIT CHEUQE DIRECTLY TO HIS A/C? WHAT ACTION IS TO BE TAKEN ON BUILDERS ? AND WHAT ACTION ? WHERE TO APPROACH ? Can We ask Tax Invoice & Calculation for the Service Tax to the Builder?

PL NOTE.: MY BUILDER IS MADE ONLY PURCHASE AGREEMENT TO SALE IN YEAR SEP 2010 AND HE HAS NOT DONE SALE DEED/CONVEYANCE DEED/SOC REGISTRATION /SOC FORMATION


Asked on 5/02/13, 12:08 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

02.05.2013

Dear Sir / Madam,

You should certainly insist on the Tax Invoice from the builder. Your responsibility ends once you have paid the Service Tax to the builder. It is the builder's liability to pay the Service Tax collected from you to the Government.

The builder is required to issue the Sale Deed to you. The conveyance of the property is to be done by the builder in the name of the Society once the Society is formed and registered.

Regards,

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Answered on 5/02/13, 3:57 am
Jayesh Desai Jayesh Desai

Liability to deposit service tax rests on builder and not on you, you have to pay him, as he has to collect it and deposit.

You can insist on receipt for service tax paid to him.

Normally conveyance is executed only after completion of the building and after obtaining OC.

Under MOFA, more particularly in Maharashtra, there is also provision for deemed conveyance - if builder fails to give conveyance for a prolonged period.

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Answered on 5/04/13, 10:08 pm


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