PLC Is Taxable. Read On To Know More

1
Home gt Blogs gt PLC is taxable. Read on to know
more
PLC Is Taxable. Read On To Know More
Mar 2018
In Green 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
JMlETBBCriL MiPfeaaiions WRfffa
le Hhtopretiys Nuyeesty? Residential Sector Indian
Real Estate Market?
PROPERTY RIGHTS OF WOMEN IN INDIA
\
lt gt
Top Rated
Recent
Cities To Become Smart With GIS Technology There
has been Lot of buzz around the... On June 22,2016
8 Reasons You Should Consider Buying Than Renting
3
In the current monetary atmosphere, there is
no... On June 10,2016
RERA Regulation Bill Brings Cheer In Rajyasabha
Assembly The RERA (Real Estate Regulation
Authority)has certainly brought... On June 22,2016
Coldwell Banker Principled Realty When we visited
Knox Realty office for the... On March
3,2015 Competition For Real Estate Agents In
India By The World's Biggest Brokerage Firm If
you are fed up of continuous calls... On May
3,2015
Categories Green Homes Home-grown News!
News Property T rends Realty Affairs
39
1
20
2
2
Recent Posts
How To Protect Your Property And Wealth? Some of
the rich families in India run a family business.
Also,... On
What Makes Thane An Attractive Realty
Market? Strong connectivity, as well as the
flourishing economy, has actually been the... On
Rules That NRI Investors Should Follow This could
be the appropriate time for non-resident Indians
to invest in... On
What Happens If Co-Owner Gives Up The Ownership
Rights? Swapnil Singh, one of the users, How
does the surrender of property... On
Interesting Ways To Use Corners Of Your Home The
wall corners are the most neglected areas of the
home when... On
Why Real Estate Is The Best Bet For NRIs Confused
how investing in Indian realty market can be
fruitful for your... On
Some Precautions For Prospective Home Buyers Act
in the haste and repent at leisure is the age-old
saying....
4
On
Why Young NRIs Invest In Indian
Realty Irrespective of a stagnant phase that
might have pretentious it, the real... On
Who Has Right Over Women's Property? There have
been many discussions about how the property of a
male... On
Quick Contacts
Phone No. 91 22 6736 4000 Email
info_at_coldwellbanker.in
(
Copyright 2017, Coldwell Banker India. All
rights reserved.