PLEASE ADVISE WETHER IT IS COMPULSORY TO PAY service tax and VAT, BEFORE REGISTRATION AND IF IT IS C

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  1. Rajendra Kumar KVN

    Rajendra Kumar KVN New Member

  2. Neha Sharma

    Neha Sharma Active Member

    1. You would be required to pay Service Tax and at the time of booking itself

    2. Practically after paying booking amount people dont cancel their flat because you've already paid the advance. They usually sell the flat to some other person and in such a case the person buying he flat will automatically pay a higher price for the excess taxes paid by you.
     
  3. Rajendra Kumar KVN

    Rajendra Kumar KVN New Member

    (1) I may cancel the flat, only if I am not getting the home loan for required amount. That is, if I fall short of my required amount, due to home loan eligibility criteria as per various banks and as per my latest salary.

    (2) As per your reply it seems I will get refund, because the company will finally sell it to some other person without collecting fresh service tax from him. But the company is saying that this service tax is for the services rendered by the company towards booking, etc. Hence, it will not be refunded.

    And in that case I have to get refund from the concerned government department. Hence, please advise me wether the the concerned government department will refund my amount, and if so, what will be the genuine reason I may have to give, and also which government department I have to contact for that.

    I have assumed that Service tax and VAT (Value added tax), comes under the purview of Commercial taxes department.

    (3) Now, they are also telling that, even if I cancel before paying Service tax & VAT, even then, I they will deduct service tax & VAT and they will pay my balance booking amount. This is because they say that they have rendered the services of booking the flat. Wether this argument is correct. Wether I have to pay Service tax & VAT, even if I cancel the flat before paying Service tax & VAT.

    (4) Also please advise me wether I have to pay service tax & VAT on all the loan amounts drawn by the company (by my home loan sanctioning bank) for construction of my flat, as and when they draw my loan amounts, or can I pay the second instalment of Service tax & VAT at the time of registering the flat (that is at the time of taking possession)
     
  4. Neha Sharma

    Neha Sharma Active Member

    If you cancel the flat, the taxes would be reimbursed back to you by the developer because it would be treated as a transaction which could not be completed. In such cases, where the transaction is not completed, the taxes are required to be paid back.

    The Sales people may not be aware of this... Try having a word in the finance team and they will tell you the exact details... As per Law, the taxes should be reimbursed in case of cancellation...
     
    Lohani likes this.
  5. Lohani

    Lohani New Member

    Hi Neha,

    I my case i have purchased a cancel flat which is ready to move. Do I need to pay service tax 3.09% to the builder or it will be deducted from the person who has availed services of the under construction flat. I have done registration of flat of my name. Now do I still have to pay service tax to the builder.

    Kindly suggest me.

    Regards
    Pankaj
     
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