Whether the buyer can pay the tax for and on behalf of the builder?
Making payment of tax, require certain information about the SP. If it suits both the parties, the buyer can pay the tax instead of the builder paying it. However, the challan for payment of tax will be bearing the name and number of the builder i.e. the SP. The buyer cannot make the payment in his name and say that the liability has been discharged. Secondly, in this case, the buyer will have to provide copy of receipted challan for payment of tax to the builder as he will have to provide these data in ST-3 returns to be filed by him. This will only ensure that the ST paid by the buyer has reached the Government. If the buyer does not provide copy of the challan, the builder will not be able to fill-up the relevant column in ST-3 return. If the details are not filled-up to that extent he will be considered as defaulter in payment of tax even though the buyer might have paid the tax.
Related Questions
- In the eventuality of the builder having collected the tax but not paying to the government or being unable to pay, whether the ST Department can recover the same from the buyer of flat?
- The builder has failed to make payment of tax in time and is required to pay interest and penalty thereon. Whether the buyer will have to pay the same to the builder?
- WHAT IS THE AMOUNT OF REAL ESTATE TAX THE BUYER NEEDS TO PAY WHEN PURCHASING PROPERTY?
