Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

Builder not giving service tax and vat demand letter

Unknown (Sr) (47 Points)

18 August 2013

My builder asking Service tax and vat after 2 yrs from the date of agreement, He is not issuing demand letter for the same but my bank is required demand letter for the same. Builder is also asking to pay Interest on st and vat after 2 yrs. pls guide me how to tackel with builder..

Reply
Follow
Share

2 Replies

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 18 August 2013

First of all please check whether the agreement requires that the payment of service tax is there. If it does not contain the same, then there is no liability in normal course as the contract is sacrosant. When ST liability was known tobe there the contract should have included the same.

Second whether the builder is registered, paying the ST and filing the returns- copies maybe obtained/ examined.

The builder was required to pay the ST on periodic basis and his non payment would not make you liable for interest. You may approach the consumer court if builder does not agree.