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Thread: VAT and Service Tax Rule
Views: 10003 | 22-03-09, 09:48 AM #1New Member
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VAT and Service Tax Rule
I am new to this forum, a great concept to have a forum like this..
I have booked an apartment in Bangalore in Jan-2005, registration is done in June-2005. That time there was no VAT and Service Tax rule. Project got delayed and now Builder is handing over possession, with this Builder is charging VAT and Service Tax. Details are as below,
VAT is = [(13,06,850) * 70% * 12.5%] ==> [9,14,795-/ is construction cost on which VAT is being calculated]
And Service tax = [(13,06,850 + VAT) * 33% * 10.2%]
Whereas my Sale Agreement mentions Construction cost of 8,74,110-/ (including car park and amenities).
So now question is whether VAT is calculated on total construction cost mentioned in Sale Agreement or on 70% of actual Apartment cost [like per sqft rate + Car park + Amenities]?
22-03-09, 09:54 AM #2
Re: VAT and Service Tax Rule
Welcome. This portal is exclusively for THE RIGHT TO INFORMATION ACT 2005and hence U may post your query at sisiter website- www.bighelpers.org. However, I understand that service tax on constuction is being removed to give boost to construction industry. Pl check from website for service tax.It takes each of us to make difference for all of us.