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GST for commercial property

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asked on Jul 31, 2015 at 12:30
by   Andy
Hi, I like to seek your opinion on above subject.

I bought a unit commercial property back in August 2013. The sale and purchase agreement(SPA) stipulates completion and handover vacant possession in 24 month from the date of SPA. Liquidated damages provision in SPA kicks in from 1August 2015.

Recently, developer starting to invoice GST charges for interim progress billings and demand me to pay the extra 6% on top of purchase price. Due to bank loan facility was based on the original purchase price.

My view in this is developer is tryung to cover their loss by charging buyers and also try to avoid liquidated damages. The delay in handover shall be developer's responsibility and they have control over delivery of the project. Thus the GST over delayed progress shall be to developer's account. In addition, liquidated damages shall also be compensated to the buyers.

Appreciate your feedback and guidance.

Regards
Andy
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1 Answers

answered on Jul 31, 2015 at 18:33
by   vkpc
My view in this is developer is trying to cover their loss by charging buyers and also try to avoid liquidated damages.
GST collected is given to the government.  The developer don't get anything.
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