7/25/2019 Maintenance and Service Tax
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Maintenance and service tax
July 29, 2015Go4ReviewsRealty
We all pay maintenance for flats that have been offere for
possession! "y efault, the maintenance char#es
invite service ta$ to the tune of 12!%&' which souns unfair,
isn(t it) *s there a way to save this service ta$)
+es, there is! simple one an that is to have RW ta-e care of
maintenance! .ver that, you nee to ensure
that maintenance char#es are reasonable, reasonable enou#h so
that your maintenance char#es per month o
not e$cee over Rs 5,000!
We iscuss below the rationale behin service ta$ implication on
maintenance char#es/
1 aintenance char#es if collecte by a profit ma-in# or#aniation
li-e a maintenance a#ency 3or builer
itself is subect to service ta$ with no waiver!
2 aintenance char#es if collecte by a non profit ma-in#
or#aniation li-e a RW will have certain
service ta$ e$emptions! his was covere uner the 6ervice ta$
circular on 7lub an ssociation service
char#es release in year 2014!
% *f a flat owner is payin# less than Rs 5000 as maintenance
char#es to RW, he will be e$empt from
6ervice ta$!
4 *f a flat owner is payin# more than Rs 5000 as maintenance
char#es, he may still be e$empt from 6ervice
ta$ provie total service ta$ accumulate by RW from such flats
havin# more than Rs 5000 maintenance
char#es oes not e$cee 10 8a-hs in total!
5 *f total of maintenance char#es for flats havin# more than Rs
5000 maintenance char#es iniviually
e$cee 10 8a-hs, these flat owners will have to pay service ta$
alon# with maintenance char#es!
8ets ta-e an e$ample for clarity, lets say we have 1000 flats in
a society/
:00 of those pay say Rs 4000 an
%00 flat owners pay say Rs 5500 to RW 3RW is the -ey!
*n this case,
http://go4reviews.in/2015/07/maintenance-and-service-tax/http://go4reviews.in/author/nishant2hit/http://go4reviews.in/category/realty/http://go4reviews.in/category/realty/http://www.servicetax.gov.in/circular/st-circular14/st-circ-175-2014.htmhttp://www.servicetax.gov.in/circular/st-circular14/st-circ-175-2014.htmhttp://go4reviews.in/author/nishant2hit/http://go4reviews.in/category/realty/http://www.servicetax.gov.in/circular/st-circular14/st-circ-175-2014.htmhttp://www.servicetax.gov.in/circular/st-circular14/st-circ-175-2014.htmhttp://go4reviews.in/2015/07/maintenance-and-service-tax/
