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PLC Is Taxable. Read On To Know More

While you were wanting to put resources into the land, you would run over a tern called the Preferential Location Charges or the PLC. The charges provide the home buyers a choice to go for a specific benefit/view at an extra cost and help Click here for the details… http://www.coldwellbanker.in/blogs/plc-taxable-read-know-more

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PLC Is Taxable. Read On To Know More

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  1. Home>Blogs> PLC is taxable. Read on to know more PLC Is Taxable. Read On To Know More Mar 2018 InGreen Homes While you were planning to invest in the real estate, you would come across a tern called the Preferential Location Charges or the PLC. The charges provide the home buyers a choice to go for a specific benefit/view at an extra cost and help the developers maximize the profits. Here are some pointers you should definitely keep in mind- PLC is taxable The judgment delivered in 2016 June makes it pretty clear that preferential Location Charges is taxable. The petitioners are the Delhi High Court had alleged that the service tax is levied on the things that aren't in relation to the construction. A clause has, however, now been introduced which basically reads as- the Taxable Service means any service given or to be given to the buyer, by the builder or developer of the housing complex or the commercial complex or any other person authorized by builders for giving preferential location or the development of complex but doesn't include the services covered under sub-clauses (zzq), (zzg), (zzzh) and in the relation to the parking place. The Preferential Location Charges here basically means that any location having the extra advantage which attracts the extra payment over and above basic sale rate. Therefore, this is liable for the complete rate of the service tax and is without any abatement. There is no standardization of Preferential Location Charges The preferential location charges may vary from one location to another, floor to floor and developer to developer. There are several reasons as to why preferential location charge is sought. In some of the cities, a higher floor could actually command higher preferential location charges. Previously, the preferential location charges were charged for ground floor to the second floor. Soon, this will change. Now, you have the preferential location charge for all sets of homes, whether the park-facing, open from two sides, road-facing or school facing, sea facing, corner floor, east facing, floor abutting, penthouses, 18, 24, 30 meters etc. These days, developers charge a PLC for any floor and an apartment. The effort is actually to make the unit likable and thus there are extra charges. It ranges between Rs 25-250 per square feet. Can there be a discount on Preferential Location Charges? Well, there is an inventory overhang or the developer is in a tight position and is looking to sell, may discount the rates. However, if you genuinely want to avail such benefit, try investing early in project development cycle when developers or builder wants to make sure quick sales over anything. Does every project cost you PLC? Usually, the preferential location charges are tagged with the luxury project. These days, however, preferential location charges have been factored in numerous projects even in smaller cities. The PLC would be payable to specific at a certain stage of construction and is generally calculated along with the complete cost of the house. PLC, however, isn't charged if a certain floor or the unit isn't seen to be enjoying s special position isn't in demand much as other units. When can PLC weigh you down? PLC does make the cost of the property weightier and with best developer brands around you, at times the amount of money you

  2. would be spending couLd be burden altogether. In the present times, the dominant developer companies in Gurgaon was dragged to Competition Commission of India because the home buyers felt that it has imposed the unfair, arbitrary and unreasonable conditions. The home buyers were asked to pay the preferential location charge upfront and still, the builder could not reserve the unit for the home buyer. The clause of the developer was that in case the unit is not reserved, the company would refund the amount without any interest. The Competition Commission of India found this to be unfair. Before investing, the home buyers should actually check for clauses. These could actually weigh you down. n * g+© « PREV ARTICLE Comments There is 0 comment on "PLC is taxable. Read on to know more". Submit A Comment your comment... yourname... your email... SENDCOMMENT Related Posts i JMlE&TBBCri&L MiPfeaaiionsWRfffa le Hhtopretiys Nuyeesty? Residential Sector Indian Real Estate Market? PROPERTY RIGHTS OF WOMEN IN INDIA \ < > Top Rated Recent Cities To Become Smart With GIS TechnologyThere has been Lot of buzz around the... On June 22,2016 8 Reasons You Should Consider Buying Than Renting

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