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Taxes on new construction building

(Querist) 01 July 2013 This query is : Resolved 
Dear Sir,
Last year May 2012 someone person booked flat, As per Purchase agreement flat cost fix 830000/- & Rs.25000 is electricity charges & government taxes paid on Rs.830000/-. No any discussion on topic of Vat & Service taxes?
But today builder demand vat & service taxes Rs.35000.
As per the law its payable to builder or not?
Report Abuse
ajay sethi (Expert) 01 July 2013
yes you have to pay VAT and service tax.
Raj Kumar Makkad (Expert) 01 July 2013
The demand is genuine, however, demand the deposit receipt.
Rajendra K Goyal (Expert) 01 July 2013
Service and VAT are to be paid to builder. Ensure Receipt of the deposit.

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