Covered car parking service tax.

6866 views 6 replies

kumar

director

25 Points Posted on 29 May 2012

Hi All,

I have purchased a three room flat in Noida, under down payment scheme, and made a payment of Rs 5363880.00 on 31.01.2012 " as stated in the booking form. I have opt for covered car parking.

Now the builder is asking me to pay tax for the covered Car park, as per them, they have interpretation that it was exempted from Service Tax. Under this ground they have send me the detail of the rule

Covered Car Parking payments done -

a)- between 1st July 2010 till 31st March 2012 to be taxed @ 10.33%
b)- on or post 1st April 2012 to be taxed @ 12.36% as and when they fall due till further GOI notice

1. Is Covered car Parking fall under Service Tax.

2. How it is calculated

Regards

Suraj

Replies (6)

Dines Bhunia

21 Points Posted on 22 June 2012

Dear Suraj,

I am also in search of the answeres to your question " Is car parking space is under Service Tax"? Can anyone answere to this question. The Govt. notification copy would a great help.

Also about the club membership: Is this also under service tax?

Regards

Dines

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Posted on 23 June 2012

Dear sir,

Covered car parking place / parking place has been specifically excluded from the service tax "Preferential Location" services. They are not chargeable to tax.

kumar

director

25 Points Posted on 25 June 2012

Prateek Agarwal,

Thanks for the Reply , Do we have any document stating that covered Car park is not Taxable, My Builder has send me the link below after I asked them and claiming under this they are asking me to pay the tax

https://www.simpletaxindia.org/2010/07/service-tax-on-construction-service-wef.html

Your assistaince with of great help to me

Regards

Suraj

Prateek Agarwal

Sr. Executive - Finance & Accounts

1732 Points Posted on 25 June 2012

Dear Sir,

In the link provided by you, It is clearly mentioned that charges paid for car parking space has been specifically excluded.

Although in the defintion portion, it is chargeable but in the notification it has been excluded.

This is the extract of the webpage which your builder has referred:-

What is taxable under this head?

CBE&C, has clarified as follows – (Annexure- A to JS (TRU-II) D.O. letter F. No.334/1/2010-TRU dated 26-2-2010)

It has been reported that in addition to these activities, the builders of residential or commercial complexes provide other facilities and charge separately for them and these charges do not form part of the taxable value for charging tax on construction. These facilities include,- (a) prime/preferential location charges for allotting a flat/commercial space according to the choice of the buyer (i.e. Direction- sea facing, park facing, corner flat; Floor- first floor, top floor, Vastu- having the bed room in a particular direction; Number- lucky numbers); (b) internal or external development charges which are collected for developing/maintaining parks, laying of sewerage and water pipelines, providing access roads and common lighting etc; (c) fire-fighting installation charges; and (d) power back up charges etc.

Since these charges are in the nature of service provided by the builder to the buyer of the property over and above the construction service, such charges are being brought under the new service. Charges for providing parking space have been specifically excluded from the scope of this service. Development charges, to the extent they are paid to State Government or local bodies, will be excluded from the taxable value levy. Further, any service provided by Resident Welfare Associations or Cooperative Group Housing Societies consisting of residents/owners as their members would not be taxable under this service.

Read more: https://www.simpletaxindia.net/2010/07/service-tax-on-construction-service-wef.html#ixzz1ymxK03ar

Santu

Self Employed

21 Points Posted on 13 September 2012

Hello All,

I am recently facing the same problem. The promoter is asking me for the tax for parking space also.

Here is the govt. circular https://www.cbec.gov.in/budget1011/do-js-tru2.pdf

Please find the point at page no 12 of the document.

Plz post here about any update.

Roe Blake

Finance Professional

21 Points Posted on 26 October 2012

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