Cash from customers

This query is : Resolved

Rahul Agarwal (Querist)
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18 November 2013 How much money can a Builder & Developer take in Cash from customer as booking amount or otherwise so that it does not violate any law?

And service tax should be added to that cash amount or not??

Nikhil Kaushik

Nikhil Kaushik (Expert)
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19 November 2013 as long as the builder offer the said amount to tax and also charge applicable service/vat on the same, there is no limit. If the same is not offered to tax, it becomes a case of tax evasion

Tushar Desai

Tushar Desai (Expert)
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20 November 2013 Agreed with Expert. However, Tax Evasion has now become a common practice. I am from Surat, Gujarat. I wanted a flat last year through a loan. I searched really hard and found that there were only 4-5 projects in entire city offering 100% White Money Payment. Now, the thing is that a 3-BHK flat costs nearly 60 Lakh. Most common Black - White ratio is 60% - 40%. How will a 3-4 Experienced person having earning Rs.50,000/- a month will pay 35 Lakh Cash?????

How many people earn 50,000 a month??? agar 50,000/- wala admi nahi kharid sakta to baki ki to baat hi kya??

Message likes : 1 times

Nikhil Kaushik

Nikhil Kaushik (Expert)
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20 November 2013 Dear Tushar Bhai...its same all over the country...

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