• Paid service tax and vat on entire agreement cost at the time of agreement

Builder has changed 4.5% on all the staggered payment made there after as per his demand. Is he right?
Remaining amount of 5% only will fall under gst. Is it that I will pay the difference of gst and the service tax for the remaining amount
Asked 4 years ago in Property Law
Religion: Hindu

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9 Answers

if the amount was paid prior to the GST the he is right in charging service tax.

yes the remaining balance amount you need to pay GST at rate of 12 percent. No you want pay difference of service tax and GST you will pay GST on entire remaining amount.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Sir after GST regim there is no service tax of 4.5 percent GST shall be charged on remaining amount. further kindly clarify your query.

you have to pay GST on remaing amount or in case you paid complete amount before GST then you donot need to pay anything that is invoice were raised before 1 july 2017.

Further i have answered what you asked first kindly elaborate your query and service tax was not paid area wise its stamp duty that is paid.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

After GSt has kicked in, the rules have changed. hence on the balance which has not been paid, you are required to pay GST @ 12%. and regarding the amount which was paid before the GST was made applicable, service tax charged on the same was permissible.

If you make any payment now, only GST will have to paid.

Shaveta Sanghi
Advocate, Chandigarh
914 Answers
111 Consultations

5.0 on 5.0

1. for all the payments made by you before introduction of GST, the builder has already collected service tax and VAT on those payments

2. so you are not liable to pay difference between the GST rate of 12% and the combined rate of service tax and VAT

3. on the balance 5% which is due from you - there will be 2 scenarios:

if the builder has already raised an tax invoice requiring you to pay the balance payment alongwith service tax and VAT, then you will have to pay those taxes

if the builder has not raised the tax invoice and the balance has become due after introduction of GST, then you will have to pay 12% on the balance 5% consideration, as GST

4. Also remember to claim benefit under input tax credit. Meaning when the builder purchased goods and availed services, he must have paid taxes on the money involved for purchase of goods and supply of services. Then the builder again collects tax from his buyers. He does not deposit the entire tax which he collects from the buyers, in the government treasury. But from that tax he deducts the taxes he paid while purchasing the goods and availing services and only the balance is deposited by him in government account. So you must ask the builder to give you the benefit of input tax credit and not charge you full 12% gst on the balance consideration payable by you

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

the SGST rate as applicable in Maharashtra state will apply in your case too. You have to pay 12% gst minus benefits availed by builder under input tax credit

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Dear Client,

It benefited you, otherwise had to file 12% on more amount paid, After GST coming into force, on rest payment, GST rate will apply.

NOTHING ILLEGAL.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You can seek explanation from him if you suspect his integrity. He is bound to clarify your doubts in this regard.

If you suspect discrimination then you may suspend the payment till you are clarified about it.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

You can withhold final payment till you get a clarification.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

There is no service tax after GST has into force.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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