DID YOU CHECK AND VERIFY THE VAT TAX, SERVICE TAX, BESCOM DEPOSIT AND BWSSB DEPOSIT CHARGED BY THE SELLER/DEVELOPER ?


ONE OF OUR READER HAS DONE A CALCULATION OF VALUE ADDED TAX, SERVICE TAX, BESCOM DEPOSIT, BWSSB DEPOSIT, LEGAL CHARGES, GENERATOR CHARGES, STAMP DUTY AND REGISTRATION FEES, WHICH WORKS OUT AT OVER 20% OF THE STATED OR QUOTED PRICE OF THE PROPERTY, APART FROM THE CHARGES PAID OR PAYABLE FOR OBTAINING THE BANK LOAN, WHICH MAY BE ANOTHER 1/2% OR 1%.

IN SOME CASES, THESE CHARGES AMOUNTED TO OVER 25% AND 75% OF THE CASES, THE BUYERS DO NOT HAVE KATHA FROM BBMP, STILL HAVE TO REMIT THE BETTERMENT CHARGES AND PAY THE KATHA FEE, WHICH WORKS OUT AT APPROXIMATELY AT 1%.

Many of the buyers are under the wrong impression and notion that the approval or sanction of BANK LOAN will confer the best right, title and interest of the property.  IT IS WRONG. 

TAKE CARE. CHECK THE CHARGES. DEMAND THE BILLS. DEMAND THE RECEIPTS. 

SERVICE TAX ON APARTMENTS AND CONSTRUCTION SERVICES-ABATEMENT 75%


SERVICE TAX ON APARTMENTS AND CONSTRUCTION SERVICES

Construction services – 25% taxable

Abatement of 75%.

Service provided with respect to

  • Construction of complex, building, civil structure and part thereof , intended for sale , wholly or partially
  • Except those where entire consideration is received after issuance of completion certificate by the competent authority.
  • This is subject to the condition that input used for providing the taxable services have not been taken under the provision of CENVAT Credit Rules, 2004.
  • Value of land is included in the amount charged from the service recipient

Further, for the purpose of valuation the amount charged shall be the sum total of the amount charged for the service including the fair market value of all the goods and services supplied by the recipient in or in relation to the services , whether or not supplied under the same contract or any other contract , after deducting :

1)    The amount charged for such goods or services supplied to the service provider, if any: and

2)    The value added tax or sales tax, if any, levied thereon.

SERVICE TAX IS 12.36%

ABATEMENT IS 75%

TAXABLE IS 25%

 

VALUE ADDED TAX INCREASED IN KARNATAKA FROM 01-08-2012


THE GOVERNMENT OF KARNATAKA HAS PROPOSED INCREASE THE VALUE ADDED TAX FROM 5% TO 5.5% AND 14% TO 14.5% ON ALL THE SCHEDULES AND PRODUCTS AND THUS THE PRICES OF ALL THE PRODUCTS AND SERVICES, WHICH ARE AFFECTED BY VAT WILL BE INCREASED BY 0.5% FROM 01-08-2012.

WELCOME- PLEASE SHARE YOUR IDEAS, VIEWS AND OPINIONS ON COMMON SUBJECTS AND ISSUES WITH OTHER READERS ON OUR FORUM


WE INVITE ALL OUR FRIENDS TO SHARE THEIR IDEAS, VIEWS, OPINIONS AND EXPERIENCES WITH OTHERS THROUGH OUR FORUM BY SENDING ARTICLES FOR PUBLICATION ON THE FOLLOWING SUBJECTS:

ENVIRONMENT

SOCIETY

GOVERNANCE

BUSINESS

PROPERTY

INCOME TAX, WEALTH TAX, GIFT TAX, VAT, SERVICE TAX, BBMP TAX, STAMP DUTY, REGISTRATION FEE, PROFESSION TAX AND OTHER ALLIED SUBJECTS

LEGAL ISSUES AT BANGALORE ON PROPERTY MATTERS

FEEL FREE TO FORWARD OR MAIL THE ARTICLES TO US AT ecopackindia@live.com.

THE ARTICLES OR SUBJECTS WILL BE MODERATED AND SELECTED SUBJECTS WILL BE PUBLISHED.