I had recently purchased office in the newly constructed office complex from the very reputed builder in Ahmedabad. I paid Rs. 11,58,165 as cost of the property and at time of possession I have to pay Rs 200 / sq ft as Municipal charges and Electricity charges, Rs. 10,000/- as legal charges and VAT, services tax, stamp duty and registration fee at actual.
In last week, I received instructed from the builder to pay other charges and all the taxes/duties/fee.
And I was shocked to learn that methods of the builder for calculating the gross cost of the property. According to them, my gross value of the property will be:
1. Base Property Price : Rs. 11,58,165/-
2. Muni/Elec charges : Rs. 74,600/-
3. Legal Services Charges : Rs. 10,000/-
4. Total of above : Rs. 12,42,765
5. Vat (0.6% of point no 4) : Rs. 7457
6. Gross Value of property: Rs. 12,50,222/-
Which means I have to pay Service tax, Stamp duty and Registration fee on Rs. 12,50,222/- instead of Rs. 11,58,165/- .
I would be grateful to the forum, if my following doubts are clarified:
1. Is it justify to calculate amount of Municipal , Electrical and legal services charges as a part of gross property cost?
2. Is it justify to calculate VAT on amount of Municipal , Electrical and legal services charges?
3. Is it justified to pay services tax, stamp duty and Registration fee on VAT amount?
4. Is it justified to pay services tax, stamp duty and Registration fee on amount of Municipal, Electrical and legal services charges?
5. I have not purchase this office directly from the Builder but through their investor. But on the books, I will be the 1st owner for this property. I had booked this property after the receipt COMPLETION CERTIFICATE from the local authority. Builder is asking for the service tax, did I have to pay Service Tax ?
I would request the forum along your answers to above questions, pl provide relevant links of government rules so that I can discuss all these points with the builder with proper proof.
Thanks in Advance.
