Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 4th February 2009, 17:03   #1
BHPian
 
sj_koova's Avatar
 
Join Date: Jan 2008
Location: Bangalore
Posts: 576
Thanked: 104 Times
Default Tax break for house buyers - No service tax

And finally we get some relief
We don't have to pay service tax on purchase on flat/hosue.

Tax break for house buyers-Bangalore-Cities-The Times of India

DNA: Mumbai: Flat buyers exempt from service tax


I did lot of fight with my builder on the service tax part few months back. They had no clarity on what portion I am supposed to pay service tax on and what is the exact percentage!. After few days of negotiation, he brought down the service tax from 1.6Lakhs to 1.1Lakhs. Now I am glad that I don't have to pay any cash.

Any of you know more about this?
What happens to existing buyers?

I am getting a copy of the court order through a known person. Have to talk to my builder tomorrow.
sj_koova is offline   Reply With Quote
Old 4th February 2009, 17:09   #2
Senior - BHPian
 
Join Date: Dec 2007
Location: Dubai
Posts: 3,854
Thanked: 123 Times
Default

All this is fine, but then, why not bring down the high level of pricing that is currently prevailing! Won't that be a better move?

This seems like the governments effort to keep the builders lobby happy. They keep the price high, the people borrow more money and when things are back, pass a government notice on new rates and backlog collections!

But, having said this, a welcome move never the less.
HappyWheels is offline   Reply With Quote
Old 4th February 2009, 19:32   #3
BHPian
 
Join Date: Jul 2006
Location: mumbai
Posts: 179
Thanked: 80 Times
Thumbs up Buyers now are a relieved tribe...

Quote:
Originally Posted by sj_koova View Post
And finally we get some relief
We don't have to pay service tax on purchase on flat/hosue.

Tax break for house buyers-Bangalore-Cities-The Times of India

DNA: Mumbai: Flat buyers exempt from service tax


I did lot of fight with my builder on the service tax part few months back. They had no clarity on what portion I am supposed to pay service tax on and what is the exact percentage!. After few days of negotiation, he brought down the service tax from 1.6Lakhs to 1.1Lakhs. Now I am glad that I don't have to pay any cash.

Any of you know more about this?
What happens to existing buyers?

I am getting a copy of the court order through a known person. Have to talk to my builder tomorrow.
Its good news that common sense finally prevailed on the Service tax officials to understand that sale of apartments should not be under the service tax. In fact in many places in mumbai, developers were charging Service Tax and Vat which used to add upto 9% of the agreement value. Poor flat buyers were left with no option but to pay them as the possession was not given if Service tax and VAt was not given. Now hopefully Govt takes a similar stand on the VAT issue
Ram
pinnacle is offline   Reply With Quote
Old 27th February 2010, 21:57   #4
Senior - BHPian
 
DCEite's Avatar
 
Join Date: Sep 2004
Location: NCR
Posts: 3,015
Thanked: 441 Times
Default

Now that in the budget 2010, all under construction flat buyers will have to pay service tax, has the good news ended?
DCEite is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax on Tax? Road tax should be calculated on ex-factory price (not ex-showroom)! SILVERWOOD The Indian Car Scene 88 30th July 2017 12:39
Luxury cars outnumber tax-paying millionaires! Income tax evasion? Nav-i-gator Shifting gears 26 7th May 2016 09:35
Congestion tax, Road tax and Regn taxes on the anvil GeekSrik The Indian Car Scene 24 20th March 2012 07:47
Buyers Beware- Malpractices of Various Car Manufacturers in Sales & Service. anupam00 Indian Car Dealerships 22 29th June 2010 23:16
Road tax or income tax? SLK The Indian Car Scene 6 5th October 2004 14:52


All times are GMT +5.5. The time now is 03:05.

Copyright ©2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks