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  1. #1
    Join Date
    Feb 2009
    Location
    Bangalore
    Posts
    1
    Name:
    Likhit

    Default VAT and Service Tax Rule

    Hi Everybody,

    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]?


    Thanks,
    Likhit


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  2. #2
    Join Date
    Apr 2007
    Location
    JUNAGADH GUJ
    Posts
    12,797
    Name:
    J.P. SHAH
    Blog Entries
    77

    Default 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.



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