Tax liability for residential flat in vadodara (gujarat)

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Ritesh (Querist)
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25 September 2016 Dear Sir,

I have book one residential flax in Vadodara city.

At the time of Dastawage, Builder asking to pay me service tax, VAT, Swach Bharat Cess, Krishi Cess and this amount comes to Rs. 150000.00

The Banakhat amounts Rs. 840000.00

Over and above, Builder also asking me to pay Rs 50000.00 for developments.

I want to know that above charges are legal or not ? If I will paid then builder is liable to issue receipt of the same or not as he is asking me to pay in cash.

Kindly reply.

Unnikrishnan B

Unnikrishnan B (Expert)
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26 September 2016 In the case of purchase of flat constructed by builder the procedure as follows
Agreement of sale is drafted :- the point to be noted here is in the agreement for sale there should be a clause when the builder passes the complete possession to you.note that when you get the occupancy certificate from the authority the procedure of your possession completes. It is advisable that you make a clause for getting the occupancy certificate.the advance money it is preferableyou pay tthrough cheque(banakhat).
Service tax and vat applicable in the construction of flat
The agreement states the part payment to be made by you. You can consult an advocate about it.Usually what happens was the builder gets delay from getting completion certificate so always mention to get occupancy certificate in the contracted time and make it black and white
After that you have to make periodical payments
After construction you have to pay for the common charges
The agreement should specify your parking space alsoalso
Precautions:-
Kindly verify the legal opinion of the documents through an advocate
Verify that the Project is approved by local authority
Verify that the project comply with the Town planning rules

Best wishes

Unnikrishnan B

Unnikrishnan B (Expert)
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26 September 2016 This is a general reply .always remember complete study to be made before you sign agreement for sale .the investment you are making is your hard earned money.cheque I have mentioned is crossed account payee or not negotiable cheque

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Ritesh

Ritesh (Querist)
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27 September 2016 Dear Sir,

I have made all the payments through cross cheque and disbursement has been done through bank loan. Now, builder is asking me above amount in cash and not ready to issue any receipt or documentary proof for service tax and VAT collection from me.

I just want to know that who is responsible to pay service tax and VAT? Builder or Buyer? If builder paid the amount then can he recover the same from the buyer or not?

Unnikrishnan B

Unnikrishnan B (Expert)
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28 September 2016 Normally the agreement for sale mentions the service tax and vat inclusion. The builder is takes service tax and vat.
The builder can it from the buyer.

Unnikrishnan B

Unnikrishnan B (Expert)
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28 September 2016 But here the abatement is there so 25% of the contracts attract service tax.service tax rate us 15%.
The builder can take it from you

Thanks