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Dhiraj (PM)     05 July 2013

Service tax and vat

Hi All,


I recently purchased a flat on the 11th floor of a 12 storey building in Virar, District Thane, State Maharashtra. The building is under construction and possesion date promised by the builder is June 2015. The builder had a scheme wherein he is paying the Stamp Duty, Service Tax and VAT applicable on the flat. And we are suppose to pay the regsitration amount.


I did the registration on 02-July-2013 for the flat and the agreement copy shows the payment for the registration (paid by us) and Stamp Duty (paid by Builder). I am unable to find any mention of the Service Tax and Vat amount in the copy. When i asked the builder about the same he said that he will pay it. But i wanted to know when is the builder actually suppose to pay the Service Tax and VAT. Cause the Loan lender company is asking from me the copies of the same along with the agrrement copy in order to successfully clear the loan.

 

Can someone please help.

 

Regards,

Dhiraj Singh



Learning

 1 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     05 July 2013

VAT

the new composition scheme is effective for the flat/units registered on or after 1st April, 2010@ 1% on the agreement value of the transfer of flat/unit under construction

SERVICE TAX
By the Finance Act, 2010 the Government has amended the definition of Commercial or Industrial Construction Service [Section 65 (25b) read with Section 65 (105) (zzq)] and construction of Residential Complex [Section 65 (30a) read with Section 65 (zzzh)].
The scope of these categories is expanded to cover sale of flats/units under construction. Builders/developers are now liable to service tax if any payment towards sale consideration is received before the grant of completion certificate by the competent authorities for such flats/unit
There is an abetement of 75% of the sale value. Thus, the tax will be levied on 25% of the sale value of flat at the rate of 10.3%
 

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