Service tax

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Raviprasaddhulipalla Raviprasa

32 Points Posted on 26 May 2016

One real estate company(indu Projects) had developed a JVproject in Hyderabad in association with Housing Board(Owner) and not project is not completed till date however, they have handed over 680 flats in the year 2012 they have transferred the title to the purchasers and the handed over the possession without title to them. Since june 2012, they were collecting maintenance charges as they are providing service viz., housekeeping,Security, paying common electricity charges and water charges to the vendors. They have not formed the association so far. Now they received notice from service tax authorities to pay some amount along with interest and they are transferring the same to us. When they have not handed over township can they transfer the same to us. A line of response is solicited from respected members. With kind regards, Ravi Prasad

Replies (2)

Nisha Chauhan

Working

57 Points Posted on 28 May 2016

Hello sir,

sir i m nt getting it clearly wether u have recieved posession or title of property or not?

n if posession is transfered then entire payment u made is done before posession or not?

Raviprasaddhulipalla Raviprasa

32 Points Posted on 29 May 2016

Sir, 1. We have received possession but not title of property. 2. Out of 680 flats only 265 people entire amount and title in their favour.Rest received possession but not title. In this 415 most of the people have to pay 10 to 40% amount towards flat cost. 3. Owner and Developer have to sign the sale deed. Builder(Developer) had not completed project as per brochure, lay out and building rules as such, owner is not coming forward to sign the sale deed. 4. Since builder had not completed he only maintaining the facility however collecting fee from us as charges. Know Service tax authorities treating that collection as the income of company and claiming tax on that is it correct.