Hi,
Builder has sent me mail asking me to pay Service tax at the rate ot 4.5+1%; He is suggesting me to pay it before 29th June aor face GST which would be 12% on my 95% complete property. I have paid 20% of the flat cost so far and 80% is payable on possesion; regstration is also done; Could anyone please advise me ASAP on this matter?
Thanks much,
First of all please check your allotment letter/builder buyer agreement whats is the payment plan in it and before GST how much amount is due in payment plan if its 20% then the amount of 20% is charged in 4.5% and in possesion if its 80% then the amount of 80% comes under 12% rate of GST.
in my opinion if you pay the advance to the builder then the tax will be charge 4.5% before GST but afterwards it will charge 12% on balance due amount.
CAclubindia
