Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: VAT RATES :: articles on VAT and GST in India :: VAT Audit :: cpt :: due date for vat payment :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: ACCOUNTING STANDARDS
« News Headlines »
 Regarding Filing of online return for first quarter of 2017-18 extension upto 01-09-2017
 Deadline to file returns extended to 28 August for biz with transitional
 GST input tax credit form
  How to rectify income tax returns
 Govt extends tax exemption for industry in North East, hilly states
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…

Want to claim service tax refund?
December, 12th 2013

Potential homebuyers can breathe a little easier. And, ones who have already bought a house can look forward to an unexpected ‘bonus’, if they apply for a refund from the service-tax department.

The customs, excise and service tax appellate tribunal had recently given a decision that home buyers would no longer have to pay the service tax — 12.5 per cent — on the lumpsum deposit they pay to the builder for maintenance. The decision is yet to be challenged by the central excise department in a higher court. But the question is how do they apply for a service tax refund?

Prashant Deshpande, indirect tax director, Deloitte, said the tribunal’s decision was good for the buyer but the process of getting the refund is not something many buyers are aware of. Many experts said since the builder (the assessee) pays the service tax, it might be a more complicated process when the buyer goes to claim the refund.

“Even if we pay excess service tax, it normally gets adjusted with future payments. So, most of us really aren’t aware how to claim a refund,” said a chief executive of a financial firm.

Despande said if the builder had already paid the service tax to the department, buyers would have to use the refund application format in which they have to give the registration number of the builder, along with other details.

Of course, there would be additional pain if the builder was registered in a completely different city. Also, the buyer can only claim the refund within one year of the payment of service tax. The basic guidelines for refund of service tax, for ones who have paid in excess, said the application has to be made in triplicate with the assistant or deputy commissioner and accompanied with documentary evidence.

This one-time maintenance deposit is paid by the buyers to the builders for maintenance and repairs are conducted till the residents form a society. The amount in the question can be as high as Rs 4-5 lakh per flat. So, the refund can be as high as Rs 50,000 – Rs 60, 000 or even more.

Says Harsh Roongta, chief executive officer of “The main argument against this service tax was that buyers give the corpus (deposits) to the builder who ultimately passes it on to the society. So, there shouldn’t be a tax on it.”

For buyers, it is a reasonably good relief though not a massive one. With the Reserve Bank of India tightening home loan guidelines, buyers anyway have to cough out 80 per cent of the property cost and stamp duty and registration charges separately. After this, builders demand such deposits. In other words, to buy Rs 50-lakh property, a potential buyer needs at least around Rs 15-18 lakh in their bank account. But small reliefs like these would make their life a little easier.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions