Doijode Jog Builder - Project Westside County
Miss Use of Service Tax Collected

On 2nd Sep Doijode launch their prime Project called "WESTSIDE COUNTY" in Aundh Annex (Pimple Gurav). Rate of the property was Rs 3300/-, Rs 3500 and Rs 3800/- depending upon the flat you select. Over and above this cost builder is recovering 2.575% of the agreement value as service tax which needs to pay along with other amount as and when due.

As per the order of Bombay High Court, there is stay on service tax to be collected. On further analysis and discussion with their (builder's) representative I came to know that theses amount will be retain by the builder so that if the order is reversed and service tax is to be paid, he can made good from the amount collected from the customer but if the High Court order is hold good and there is no need to pay service tax the said amount will be retain by the builder as sales consideration.

Total amount collected as service tax would be Rs 100, 000 average per flat X 400 flat = Rs 4, 00, 00, 000.

How can builder retain the amount which is collected as service tax and not paid to the Goverment.

According to me whatever may be the final dicission of the court, any amount collected in the name of Law should be deposited to concern goverment authority.

Company: Doijode Jog Builder - Project Westside County
Country: India
State: Maharashtra
City: Pune

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