• Refund of service tax and banakhat charges on cancellations of booked flat

I have booked a flat in may"17 and paid 7.30 lacs + .32 lacs as booking amount and service tax respectively. Now I want to cancel the booked flat due to some unavoidable circumstances. I had word with builder on same and builder told me that service tax and banakhat fees will not be returned to me as noe GST in place of Service tax. 
Kl suggest me what should I do to get back service tax and banakhat amount.
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 10 minutes.

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13 Answers

1. What is banakhat amount? Do you know any English word for the same?

2. for refund of GST you will have to approach the GST Department only

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1. what is banakhat amount in English?

2. for gst refund you will have to approach the GST department itself. Write a letter informing about the cancellation of booking of the flats and follow up with that letter through a Right to Information Application for sooner reply

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Hello,

There is no provision for you to receive back the service tax and banakhat amount.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1. Firstly what is the term & condition of agreement

2. Then it will proceed with that

Arun Kasana
Advocate, Delhi
32 Answers

Not rated

You can file a suit for cancellation and recovery.

Jaswant Singh
Advocate, Gurugram
926 Answers
2 Consultations

4.8 on 5.0

1) Charges paid to govt in the form of GST and stamp duty that wont be refunded. Take remaining amount after deduction, check the new GST rules manual on RERA website.

Ganesh Kadam
Advocate, Pune
12338 Answers
191 Consultations

4.9 on 5.0

the concerned builder can make adjustment of excess payment of Service Tax in terms of Rule 6(3) of Service Tax Rules, 1994 which is given below for ready reference:

“Where an assessee has issued an invoice or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason, or where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract, the assessee may take the credit of such excess service tax paid by him, if the assessee:-

Has refunded the payment or part thereof, so received for the service provided to the person from whom it was received; or

(b) Has issued a credit note for the value of the service not so provided to the person to whom such an invoice has been issued.”

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

You can get refund of service tax paid by you

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

The service tax paid to the government cannot be returned by the builder because it is not held by him, he has to deposit the same to government account every month accordingly.

The other statutory charges are to be paid while cancelling the booking on your own.

The builder may be requested to not to deduct his charges since you have not yet entered into a sale agreement also.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

The service tax and the registration charges cannot be refunded since it has been paid to the government account.

The 1% charges towards the sale agreement is very reasonable.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

Firslty, yes he is right where he says that service tax once gone it’s gone then to government, you can’t get it back.

Secondly, But, with regard to one percent, you may be successful if it is not there in contract that if you cancel then same would not be refunded.

Thirdly, if it is there then you may not be able succeed.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

This is my response to you:

1. You will not get the return of the service tax amount paid, since it is now GST. Therefore approach the GST department for refund of service tax;

2. This is how to get a refund of GST:

Step 1: Login to GST Portal

Step 2: Go to ‘Services’ > ‘Refunds’ > ‘Application for Refund’

Step 3: Select ‘Refund of Excess Balance in Electronic Cash Ledger’ and click on ‘CREATE’;

Step 4: Once you click on ‘CREATE’ in the above step a screen will appear reflecting all balances in the Electronic Cash Ledger which can be claimed as refund.

Step 5: Select the Bank Account (in which you want the refund to be credited) from the drop-down and click on ‘SAVE’.

Step 6: Click on the checkbox in the declaration. Select the name fo the ‘Authorised Signatory’ from the drop-down.

3. You can also call up the GST department and resolve your query;

4. Registration fees will not be payable back to you since its non-refundable;

5. If registration and stamp duty has been paid by you, then you become the owner of the flat since it is effectively transferred to you;

6. Why don't you sell it at profit to somebody else.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

You need to see the agreement with bulider and clause of cancellation.

Prashant Nayak
Advocate, Mumbai
27275 Answers
88 Consultations

4.4 on 5.0

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