• Flat: Service Tax and VAT overcharged / not paid to government

I have bought a flat in Bangalore (registered in November 2015). The developer has charged VAT ~ 2.5 Lakhs Service Tax ~ 3 Lakhs (mentioned in the costing spreadsheet shared by the developer via official e-mail). However he has not given me any receipts towards the same. A fellow resident who was also charged VAT and service tax inquired with authorities via RTI and got information that there is no VAT deposited by the Developer on that resident's name. Also there is a huge gap in total taxes that should be deposited (simple ballpark calculation) vs what is deposited. So it seems that there is something amiss. When I look at the costing spreadsheet it appears that I am overcharged on the taxes for example the developer has charged VAT and service tax on the deposits for Sewerage Board and Power Distribution company.

My questions:

1. Whether I can ask the developer to give me receipt for service tax ? whether the receipt can be used to track that the money reached the authorities ?

2. Whether the service tax and VAT submitted to government bodies are expected to have consumer name ?

3. In cases of wrong / overcharging can we claim reimbursement ? How does one establish overcharging/wrong charging ?Is there some manual from which we can say that particular item should not be taxed for VAT/Service Tax ?

4. How does a consumer get information from the authorities that the service tax collected by the consumer is deposited with the government ? please give some details on what information can be sought from the government to establish this ?

5. Are consumers entitled to a VAT receipt ? 

6. How does a consumer get information from the authorities that the VAT collected by the consumer is deposited with the government ? please give some details on what information can be sought from the government to establish this ?
Asked 5 years ago in Service Tax

You can ask for a account confirmation from the builder mentioning the amount of service tax and VAT collected from you and if you feel that he has not submitted the amount or overcharged you just submit the details with the VAT/service tax department.

You as a consumer can't do anything as such because you are not required to claim credit of such Vat or service tax as same is for personal use.

All you can do is ask the authorities that the developer has collected more amount from you and if they feel that you are correct they might reimburse you but in normal cases where the department itself finds that one has collected some amount in name of taxes and not submitted it to government they collect the same from them and even charge interest and penalty on same.

Hope you find the information helpful if you do please rate it 5 and provide your valuable feedback for my improvement.

Thank you

Naman Maloo
CA, Jaipur
4272 Answers
97 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !!

1. Yes, you can ask to the developer to give receipt/account confirmation for VAT/Service tax charged by him.

2.No.

3, 4 & 6. You can submit the details of overcharging/wrong charging to VAT/Service tax department.

5.Yes, consumers are entitled to have a VAT receipts.

Thanks & Regards,

Payal Chhajed

  

Payal Chhajed
CA, Mumbai
5188 Answers
288 Consultations

5.0 on 5.0

Hi,

- Yes you can ask from the developer for the service tax/ VAT receipt but it will not be in your name because these get deposited on monthly basis by the developer. It is difficult for you to track whether your payment is covered or not.

 

- In case of overcharging, you can claim from the developer and not authorities.

 

- You can get the information through RTI or you can ask builder the calculation sheet pertaing to your period along with challans.

 

Thanks

Vivek Kumar Arora
CA, Delhi
4840 Answers
1037 Consultations

5.0 on 5.0

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