JAYAM_NANI Posted June 6, 2017 Share Posted June 6, 2017 With the introduction of GST, the taxes were increased by around 6.5% on the purchaser in Maharashtra. Builders pass on the service tax and VAT component to the purchaser. It is the purchaser who has to deal with the taxes. Link to comment Share on other sites More sharing options...
Chandasasanudu Posted June 6, 2017 Share Posted June 6, 2017 ekkada aina end of the day buyer eega barichali Link to comment Share on other sites More sharing options...
Babu Posted June 6, 2017 Share Posted June 6, 2017 Acc to the info I have, there is ITC for developers and when calculated burden increased is around 2 to 3% .. Link to comment Share on other sites More sharing options...
Babu Posted June 6, 2017 Share Posted June 6, 2017 There is a sample workout , kindly go through Link to comment Share on other sites More sharing options...
Nekkanti Posted June 6, 2017 Share Posted June 6, 2017 Resale flats meedha emanna change undha Link to comment Share on other sites More sharing options...
Babu Posted June 6, 2017 Share Posted June 6, 2017 Resale flats meedha emanna change undha Resale in case of project completed construction and got NOC from respective authorities then no GST, If resale during construction period then GST is applicable. In either cases stamp duty is mandatory Link to comment Share on other sites More sharing options...
Nekkanti Posted June 7, 2017 Share Posted June 7, 2017 Resale in case of project completed construction and got NOC from respective authorities then no GST, If resale during construction period then GST is applicable. In either cases stamp duty is mandatory Resale of a currently in use flat? Link to comment Share on other sites More sharing options...
ramntr Posted June 7, 2017 Share Posted June 7, 2017 Resale in case of project completed construction and got NOC from respective authorities then no GST, If resale during construction period then GST is applicable. In either cases stamp duty is mandatory You mean after construction flat konte no get effect Aa? In this case ppl prefer this way no? Link to comment Share on other sites More sharing options...
MVS Posted June 7, 2017 Share Posted June 7, 2017 There is a sample workout , kindly go through Uncle meeru 2.5% antunaru akkada 7% daka kanapadutundi ga difference Link to comment Share on other sites More sharing options...
JAYAM_NANI Posted June 7, 2017 Author Share Posted June 7, 2017 but the problem is builders are not passing the benefit of ITC to buyers brother. i had booked a flat in Mumbai (Rustomjee). Builder had given me a notice of increase in taxes because of GST by 6.5% and he doesn't talk anything about ITC benefit being passed to me. Builder says that he can negotiate with banks on giving me loan, so that i can pay all the payments scheduled in the next year as per the construction to him well in advance to avoid increase in taxation. He says he can given 9% interest too on payments. But he also cautions that there is a chance that Govt can request to pay the difference subsequently which is not being paid if we pay the entire amount now. The building will be ready by June 2019. Any suggestions on how to handle this situation? Link to comment Share on other sites More sharing options...
JAYAM_NANI Posted June 7, 2017 Author Share Posted June 7, 2017 ekkada aina end of the day buyer eega barichali but here 6.5% increase (in Maharashtra) is significant kadha. Moreover builder is also not passing ITC benefits to buyers. Link to comment Share on other sites More sharing options...
MVS Posted June 7, 2017 Share Posted June 7, 2017 but here 6.5% increase (in Maharashtra) is significant kadha. Moreover builder is also not passing ITC benefits to buyers. What is ITC ? Link to comment Share on other sites More sharing options...
Babu Posted June 7, 2017 Share Posted June 7, 2017 The building will be ready by June 2019. Any suggestions on how to handle this situation? If U have time kindly wait, passing ITC benefit by builder ane point chala kothadi industry Ki,, enta itc vastundi halfway projects lo , till project completion daaka credit carry forward avtunda etcc chala questions unnayi anduke pass cheyadam ledu imo Link to comment Share on other sites More sharing options...
Babu Posted June 7, 2017 Share Posted June 7, 2017 You mean after construction flat konte no get effect Aa? In this case ppl prefer this way no?Yes, After NOC by competent authority no GST , MVS brother, Input Tax Credit Link to comment Share on other sites More sharing options...
JAYAM_NANI Posted June 7, 2017 Author Share Posted June 7, 2017 If U have time kindly wait, passing ITC benefit by builder ane point chala kothadi industry Ki,, enta itc vastundi halfway projects lo , till project completion daaka credit carry forward avtunda etcc chala questions unnayi anduke pass cheyadam ledu imo I had discussed with builder's representative today (an hour ago) and he says they can give a maximum ITC up to 1.5%. Moreover, as i understand, now GST now is applicable for the entire house cost. Previously, they used to categorize these costs in three parts [cost of land, cost of goods (VAT), construction services (service tax)]. Link to comment Share on other sites More sharing options...
Babu Posted June 7, 2017 Share Posted June 7, 2017 I had discussed with builder's representative today (an hour ago) and he says they can give a maximum ITC up to 1.5%. Moreover, as i understand, now GST now is applicable for the entire house cost. Previously, they used to categorize these costs in three parts [cost of land, cost of goods (VAT), construction services (service tax)]. He may be right depending on the stage of construction,, I will share more info in coming days but postpone your registration process if possible or register now itself before July 1st Link to comment Share on other sites More sharing options...
Chandasasanudu Posted June 7, 2017 Share Posted June 7, 2017 pichi ni pennta pennta chsthunnaruga Link to comment Share on other sites More sharing options...
JAYAM_NANI Posted June 7, 2017 Author Share Posted June 7, 2017 He may be right depending on the stage of construction,, I will share more info in coming days but postpone your registration process if possible or register now itself before July 1st already naadi registration ayipoyindhi bro. registered documents talk about compulsory part payments in accordance with the construction plan. In Maharashtra bank loan is only sanctioned if you get the registration of your flat even before the construction starts. This is different in Andhra Pradesh as i guess. Link to comment Share on other sites More sharing options...
Nekkanti Posted June 7, 2017 Share Posted June 7, 2017 Resale of a currently in use flat? Link to comment Share on other sites More sharing options...
MVS Posted June 7, 2017 Share Posted June 7, 2017 Yes, After NOC by competent authority no GST , MVS brother, Input Tax Credit Thank you babu uncle Link to comment Share on other sites More sharing options...
Babu Posted June 7, 2017 Share Posted June 7, 2017 Resale of a currently in use flat? No GST Link to comment Share on other sites More sharing options...
Babu Posted June 7, 2017 Share Posted June 7, 2017 already naadi registration ayipoyindhi bro. registered documents talk about compulsory part payments in accordance with the construction plan. In Maharashtra bank loan is only sanctioned if you get the registration of your flat even before the construction starts. This is different in Andhra Pradesh as i guess. S, in that case bargaining with developer individually is one option and all the buyers form a group and approach developer for better result with a consultant review is another .. Link to comment Share on other sites More sharing options...
JAYAM_NANI Posted June 7, 2017 Author Share Posted June 7, 2017 S, in that case bargaining with developer individually is one option and all the buyers form a group and approach developer for better result with a consultant review is another .. ITC meeda clarity ledu brother. If we can have that clarity, we should be able to bargain. Builder says that as there are many amenities, he can't provide more ITC. Paiga as i understand from builder, GST is now being applied on all the cost components. Builder is suggesting to pay the amount as early as possible with less tax. Link to comment Share on other sites More sharing options...
Babu Posted June 8, 2017 Share Posted June 8, 2017 ITC meeda clarity ledu brother. If we can have that clarity, we should be able to bargain. Builder says that as there are many amenities, he can't provide more ITC. Paiga as i understand from builder, GST is now being applied on all the cost components. Builder is suggesting to pay the amount as early as possible with less tax. It really takes time to get clarity brother, even Dept people are in handsup mode, any payment before Gst is always recommended Link to comment Share on other sites More sharing options...
Babu Posted June 16, 2017 Share Posted June 16, 2017 Press Information Bureau Government of India Ministry of Finance 15-June-2017 17:05 IST Reduced Liability of Tax on complex, building, flat etc. under GST The CBEC and States have received several complaints that in view of the works contract service tax rate under GST at 12% in respect of under construction flats, complex etc, the people who have booked flats and made part payment are being asked to make entire payment before 1st July 2017 or to face higher tax incidence for payment made after 1st July 2017. This is against the GST law. The issue is clarified as below:- 1. Construction of flats, complex, buildings will have a lower incidence of GST as compared to a plethora of central and state indirect taxes suffered by them under the existing regime. 2. Central Excise duty is payable on most construction material @12.5%. It is higher in case of cement. In addition, VAT is also payable on construction material @12.5% to 14.5% in most of the States. In addition, construction material also presently suffer Entry Tax levied by the States. Input Tax Credit of the above taxes is not currently allowed for payment of Service Tax. Credit of these taxes is also not available for payment of VAT on construction of flats etc. under composition scheme. Thus, there is cascading of input taxes on constructed flats, etc. 3. As a result, incidence of Central Excise duty, VAT, Entry Tax, etc. on construction material is also currently borne by the builders, which they pass on to the customers as part of the price charged from them. This is not visible to the customer as it forms a part of the cost of the flat. 4. The current headline rate of service tax on construction of flats, residences, offices etc. is 4.5%. Over and above this, VAT @1% under composition scheme is also charged. The buyer only looks at the headline rate of 5.5%. In other cities/states, where VAT is levied under the composition scheme @2% or above, the headline rate visible to the customer is above 6.5%. What the customer does not see is the embedded taxes on account of cascading and sticking of input taxes in the cost of the flat, etc. 5. This will change under GST. Under GST, full input credit would be available for offsetting the headline rate of 12%. As a result, the input taxes embedded in the flat will not (& should not) form a part of the cost of the flat. The input credits should take care of the headline rate of 12% and it is for this reason that refund of overflow of input tax credits to the builder has been disallowed. 6. The builders are expected to pass on the benefits of lower tax burden under the GST regime to the buyers of property by way of reduced prices/ installments. It is, therefore, advised to all builders / construction companies that in the flats under construction, they should not ask customers to pay higher tax rate on instalments to be received after imposition of GST. 7. Despite this clarity on law position, if any builder resorts to such practice, the same can be deemed to be profiteering under section 171 of GST law. Link to comment Share on other sites More sharing options...
koushik_k Posted June 16, 2017 Share Posted June 16, 2017 GST valla ma company ki 70 lakhs hole Adi implement cheyatanke ERP lo. MH. E GST prajalaki Manchi cheste bavunnu Link to comment Share on other sites More sharing options...
chanti149 Posted June 19, 2017 Share Posted June 19, 2017 Gst valla watever konni taxes taggutai etc ani cheptunaro....all those benefits ni customer ki reach avtayani gaurantee enti....?? E.g....recently stents prices regulation edo chesaru...but most hospitals..stent price tagichinatu chopichi...vere hospital bill penchi...malli overall bill anthe avtundi.... So gst valla kuda tagge taxes benefit ni middlemen or business people njoy chesi cistomers ki benefit reach avakunda cheyarani gaurantee emundi...?? Link to comment Share on other sites More sharing options...
darklord Posted June 19, 2017 Share Posted June 19, 2017 Gst valla watever konni taxes taggutai etc ani cheptunaro....all those benefits ni customer ki reach avtayani gaurantee enti....?? E.g....recently stents prices regulation edo chesaru...but most hospitals..stent price tagichinatu chopichi...vere hospital bill penchi...malli overall bill anthe avtundi.... So gst valla kuda tagge taxes benefit ni middlemen or business people njoy chesi cistomers ki benefit reach avakunda cheyarani gaurantee emundi...?? Same doubt.. perigina vaatiki customer ni baadesi, taggina vaaatini silent ga pockets lo vesukorani guarantee emina undha.. Link to comment Share on other sites More sharing options...
chanti149 Posted June 19, 2017 Share Posted June 19, 2017 Same doubt.. perigina vaatiki customer ni baadesi, taggina vaaatini silent ga pockets lo vesukorani guarantee emina undha..jaitley uncle cheptunadu...ala cheyani valla paina serious action untadani...india lo attantivi jariginatte ika... Adi chosaka naku arthamaindi...ok aithe inka customers ki vachedi emi ledanamaata ani...hmmm Link to comment Share on other sites More sharing options...
Babu Posted June 19, 2017 Share Posted June 19, 2017 Atleast in infra passing full benefits to customer will take some time, ther are so many components to deal with apart from Gst from goods there is reverse Gst applied for labour component and for projects already in progress what are they entitled to claim to pass benefit becoz most of the products are via C form etccc,, But definitely benefits will reach end user , here and ther some cases may make news but just matter of time customer Ki plus avtundi Link to comment Share on other sites More sharing options...
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