Service tax calculation

Your property-related legal queries answered by S.C. RAGHURAM, Partner, RANK Associates, a Chennai-based law firm

July 27, 2018 02:24 pm | Updated 02:24 pm IST

I booked a 2BHK apartment in September 2016 (land area of 538 sq.ft. and construction area of 1,122 sq.ft.). I have been provided with the payment schedule and the amount has to be paid at the nine stages of the construction. A service tax of 6% is being charged from stage 2 to stage 9.

The builder has informed that the service tax is calculated @ 6 % on the construction agreement value as they are following the works contract tax. Is this a standard tax percentage or is it calculated based on the construction area ?

Kavin Muthusamy

Chennai

You can request the builder to provide you an opinion from a chartered accountant or tax consultant as to the applicability of GST to your transaction. You can also obtain proof of payment of such tax from the Builder.

Neighbours on either side of my house have started construction on their vacant land. There is lot of cement, debris and dust around my house and terrace. They do clean up after multiple requests, but it’s not regular. How can I approach this matter legally incase they do not oblige to my requests to clean and repaint my house exteriors?

Rajeev S

Bengaluru

Normally, the rules of Corporation will provide for enclosing the site to avoid nuisance to neighbours and accidents to passers-by. You can send a complaint in writing to the approving authority to enforce the conditions of approval.

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