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Service tax

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Service tax

Postby kbmalhotra » Fri Jun 08, 2012 3:03 pm

Heritage Cottages (Ozone Square), Sector 89.

Builder has sent demand letter for service tax.I am reproducing below the reply sent by me to the builder. I am requesting other members of Heritage cottage to offer their comments.

In reference to your letter, following clarifications may kindly be made before the payment of service tax is done by us.
1. What is the ratio between material and labour over which the service tax has been calculated by you?
2. What is the percentage of service tax and how have you calculated the tax.
3. How much amount has been demanded by tax department and how have you distributed the tax amongst buyers.
4. You had informed a few days back that you had moved court against imposition of service tax.
5. What is the out come. Kindly provide the copy of court orders.
6. You were supposed to deliver the flats in 2010 but you failed. Had you delivered the flat in time this service tax would not have been imposed because Govt. has imposed service tax during 2010 only.
7. Why the customers are being punished for no fault of theirs.
8. Now when do you intend to hand over the flats to customers?
9. As per agreement you are supposed to pay penality for delay in handing over the flat. Why are you silent on that?
10. Kindly give reply in detail at an earliest so that the amount can be paid.
11. Please note that my whole provident fund received on my retirement has been spent on this flat. I am under heavy stress.
12. I visited site one year back and again a few days back. There was no progress what so ever during one year's time.
13. The work has been stopped after you have collected more than 90% of amount from us.
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