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Ashish (director)     10 September 2012

Vat and service tax

I am planning to purchase flat in bangalore. builder is asking for VAT and service tax on below formula. is this correct?

 

Formula for VAT : ((Construction Cost + Car Parking + Amenities) x 70%) x 14%

Construction Cost = Basic Cost – land cost

Land Cost = Basic Cost – 32%

Service Tax : Total Cost x 3.09%

Please guide!



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 1 Replies

Sameer (Engineer)     16 September 2012

I too have query on Vat and service tax of new flat.

I have booked a flat in Pune on 13-March-12 by paying a initial booking amount. the scheme got completion certificate on 29-mar-12. I did my agreement in month of May-12, which is after getting completion certificate. So in this case will I have to pay the service tax. Initially we {builder and me} were under impression that I dont have to pay any service tax since my agreement is after completion certificate date. But now builder says I have to pay the service tax on complete agreement value.

So please suggest in this case. this seems to be a different case.

thanks,

Sameer


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