Is Refund from Builder allowed
This query is : Open
26 December 2010
Dear Sir
I had purchased Flat in Pune which is under construction till date & get possession in January 2011. I had get sanctioned loan from SBI Bank of 10.50 Lacs of which till date 8.66 lacs are received by different demands given by my Builder. My Flat Value consists of following Basic Cost + Stamp Duty & Registration + MSEB + Society Formation + Deposit against Maintenance (Total 12.40 Lacs). All of these items are mentioned in Agreement & SBI sanctioned Loan considering all these. I paid the Stamp Duty & Registration charges on my own for which receipts are provided to Bank. Now my Builder is saying that he can take only Basic Cost from us in cheque. Other amounts (MSEB, Socicety Formation, Deposit against maintenance) should be made in cash to him else they will be taxable to him. If I gave him all this charges in cash incerasing my burden then Bank will not be able to give me remaing loan as no receipts from builder will be received. Builder had gave us option that he will give us the receipt but then I will have to pay 10 % tax on exces amount collected by him other than Basic Cost. I had given them option better you collect from Bank & refund me back & then I will give to you in cash. But according to his C.A. such refunds are not allowed. So now i had left with option of paying his income tax with my cash as I can't spare extra amount which may come to 1-1.5 lacs. It will be great help if you guide me in this case.
I had purchased Flat in Pune which is under construction till date & get possession in January 2011. I had get sanctioned loan from SBI Bank of 10.50 Lacs of which till date 8.66 lacs are received by different demands given by my Builder. My Flat Value consists of following Basic Cost + Stamp Duty & Registration + MSEB + Society Formation + Deposit against Maintenance (Total 12.40 Lacs). All of these items are mentioned in Agreement & SBI sanctioned Loan considering all these. I paid the Stamp Duty & Registration charges on my own for which receipts are provided to Bank. Now my Builder is saying that he can take only Basic Cost from us in cheque. Other amounts (MSEB, Socicety Formation, Deposit against maintenance) should be made in cash to him else they will be taxable to him. If I gave him all this charges in cash incerasing my burden then Bank will not be able to give me remaing loan as no receipts from builder will be received. Builder had gave us option that he will give us the receipt but then I will have to pay 10 % tax on exces amount collected by him other than Basic Cost. I had given them option better you collect from Bank & refund me back & then I will give to you in cash. But according to his C.A. such refunds are not allowed. So now i had left with option of paying his income tax with my cash as I can't spare extra amount which may come to 1-1.5 lacs. It will be great help if you guide me in this case.
26 December 2010
Now builders are liable for service tax and they have to charge the service tax from their customers.
In the given situation you may request your banker to reimburse you the amount of Stamp Duty and Registration Charges and explain them the reasons. I am hopeful that they will not disappoint you.
You have mentioned that "All of these items are mentioned in Agreement & SBI sanctioned Loan considering all these."
As the bankers have to extend the facility within the sanctioned limit and for a valid reason, please try it out.
In the given situation you may request your banker to reimburse you the amount of Stamp Duty and Registration Charges and explain them the reasons. I am hopeful that they will not disappoint you.
You have mentioned that "All of these items are mentioned in Agreement & SBI sanctioned Loan considering all these."
As the bankers have to extend the facility within the sanctioned limit and for a valid reason, please try it out.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- House Property Reporting in ITR
- Internship/Academic shown in Salary Pay Slip of a Doctor
- TDS Claim year
- Liable to deduct tds and 44ADA
- Relief u/s Section 89
- TDS Challan Code
- Rent lease agreement
- Refund of 20%pre-deposit paid for stay application
- Nomination of Bank for refund in itr 2
- Section 56(2) of the Income tax Act 1961 , Gift to relative .
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
