Tax break for house buyers - No service tax

sj_koova · 4th February 2009, 17:03

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.

HappyWheels · 4th February 2009, 17:09

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.

pinnacle · 4th February 2009, 19:32

Quote:

Originally Posted by sj_koova

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

DCEite · 27th February 2010, 21:57

Now that in the budget 2010, all under construction flat buyers will have to pay service tax, has the good news ended?

4th February 2009, 17:03	#1
sj_koova BHPian Join Date: Jan 2008 Location: Bangalore Posts: 677 Thanked: 623 Times View My Garage	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.
	() Thanks

4th February 2009, 17:09	#2
HappyWheels Senior - BHPian Join Date: Dec 2007 Location: Bangalore Posts: 4,143 Thanked: 566 Times	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.
	() Thanks

27th February 2010, 21:57	#4
DCEite Senior - BHPian Join Date: Sep 2004 Location: NCR Posts: 3,532 Thanked: 3,112 Times	Now that in the budget 2010, all under construction flat buyers will have to pay service tax, has the good news ended?
	() Thanks