Vat and Service Tax

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Service Tax and VAT for Apartments

Posted onMarch 21, 2015by Satyam inFirst Time Buyer,Buyers Voice

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Many of us are unaware of the actual Service Tax and VAT to be paid for an under-

construction flat. e an informed buyer and !uestion your builder " developer for clarity

on taxes that you pay. #et$s be%in with %ettin% the definitions ri%ht&

'ell( service tax is paid when a service is rendered to you. And VAT is paid when a

product )%ood* is bein% sold to you+ however( VAT is not applicable on immovable

property " %oods. ,n that case( why do we pay service tax and VAT for our new flats To

make that simple( let$s take two scenarios.

Buying a Ready-to-move-in property

,f you are buyin% a ready to occupy flat+ in case the builder has developed the proect to

/001 2 obtained the occupancy certificate for the same before sellin% it to you 3 it$s a

product bein% sold. There is no service component involved in this and hence you don$t

have to pay any service char%es. And if it$s a product )and not a service* then should you

be payin% VAT )Value Added Tax* on it Short answer is 456$. VAT is not applicable for

immovable %oods. ,n summary( if you are buyin% a flat that is already developed by a

builder( there is no Service Tax or VAT involved.


3/32

Update:Ancillary services provided by the builder, even if the property is ready to move

in, will attract service tax but only on the service charge, not on property value. Ex.

service tax will be payable on property maintenance charges.

Buying an under-construction

property

The 70/0-// bud%et imposed service tax on all under-construction properties from 8uly /(

70/0. 5ow( accordin% to the Service Tax Act 9Section :;)/0;*overnment abatement of ?; percent )increased from :? percent*( tax will be levied

only on 7; percent of the %ross value of the property. The effective rate of service tax is

therefore @.;1.


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Many of us assume this to be simply @.;1 of total cost at the time of buyin%+ but there is

more to it. The followin% table summaries the Service Tax component of each service

bein% rendered to you.

ase Brice 3 @.;1

B#C )Bremium #ocation Char%es* 3 /=1

Car Barkin% 3 @.;1

Club Membership ees 3 /=1

Dxternal Dlectrification Char%es 3 @.;1

ire i%htin% 3 @.;1

Bower ackup 3 @.;1

Admin Char%es 3 /=1

Transfer Char%es 3 /=1

or example(

The basic s!uare feet price of your /700 S! t flat is Es =000 with B#C of Es

/00.

Car Barkin% Char%es F @(00(000

Service TaxF 9G)/700 H =000* I @(00(000J H .0@;< I 9)/700 H /00* H 0./=< F

Es. /(K;(@00

How much VAT should you pay?


5/32

VAT varies from state to state. ,f VAT in your state is ;1( you can extend that your flat$s

construction material cost. All you need to do is ask your builder for the construction

material cost of your unit and apply ;1 on it and you will %et a fi%ure.

or Dxample

Construction Material Cost of your unit is Es. @0(00(000

VATF @0(00(000 H .0; F Es. /(;0(000

Lope this article will help you in makin% informed decisions. ,f you benefit from it( leave

us a comment and share the knowled%e&

Expert OpinionExpert Advisor

SatyamReview Date

06/01/2015Project

Service Tax and VAT for ApartmentRating

(45) Comments

/.

NitinParek

on 8uly 7:( 70/; at ?/K pm said

Thanks for explainin% with %ood examples.. ,ts really helpful.

Eeply
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-668http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=668#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-668http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=668#respond


6/32

o

Satyam

on Au%ust /N( 70/; at ?0: pm said

Thanks 5itin.

Eeply

7.

sumeet

on Au%ust 7( 70/; at =/@ am said

Lello(

Very useful information.

, purchased a under construction flat in Mumbai and already done a re%istration of the

property and construction is %oin% on. My !uery is as belowi.My builder is askin% me to pay service taxIVat on the entire arran%ement value

)however accordin% to construction payment term only ;01 of work is completed*.

ii. Low to check whether builder is payin% STIVAT to %overnment as in the receipt no

T,5 and service tax no is printed. Low to cross check if , %et the service tax and T,5 no.

of my builder.

Awaited for your early replyO

Thanks

Sumeet.

Eeply
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-722http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=722#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-686http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=686#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-722http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=722#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-686http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=686#respond


7/32

o

Satyam

on Au%ust /N( 70/; at ?/0 pm said

, believe you cannot do a formal re%istration of flat while it is under construction.

i. Pou should pay Service Tax and VAT only as per the payment schedule. A builder

cannot ask for whole of tax amount upfront. Pou should contest this with your builder.

ii. Pou should demand service tax 2 VAT on builder$s invoice that has service tax number

on it. 6r ask for the service tax number from your builder.

Eeply

@.

Akshita

on Au%ust //( 70/; at 7;@ am said

Sir(do we have to pay service tax for apartments under owners share.

Eeply

o

Satyam

on Au%ust /N( 70/; at ?/@ pm said

Pes. The same lo%ic applies.
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-723http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=723#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-706http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=706#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-724http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-723http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=723#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-706http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=706#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-724


8/32

The land owner keeps a share of some units in an apartment. ut the same are

constructed by the builder. 'hile apportionin%( the ST 2 VAT also %ets distributed over

owner$s share as well.

'hether owner sells it or builder 3 the taxes will be recovered by the buyer. ,t$s theconstruction sta%e that matters.

Eeply

=.

Deepa

on Au%ust /N( 70/; at ?;: am said

Li( the builder is char%in% me Service Tax Q /7.@:1 on the followin% 3

C#RL6RSD MDMDESL,B DDS

S6C,DTP 6EMAT,65 CLAE>DS

MA,5TD5A5CD CLAE>DS )/N M65TLS*

,5EASTERCTRED CLAE>DS

Can you please advise if this is correct

Eeply

;.

Satyam

on Au%ust /N( 70/; at ?/= pm said

That$s correct. ut current service tax is /=1( not /7.@:1.

Eeply
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9/32

:.Pradeep

on Au%ust 7/( 70/; at /7=0 pm said

/. My builder has been insistin% that the Service tax for Car parkin% is /=1 and not @.;1.

Can you please provide the link to the >overnment document where Service tax is

defined , tried searchin% but couldn$t locate.

7. ,n my Contract( uilder had !uoted ,nfrastructure Cost as Es.7; per S!.ft I Tax( but

now demandin% Es.@?.; per S!.ft. I Tax 3 sayin% that >overnment has revised the rates.

,s this acceptable

@. uilder is also chartin% /=1 service tax on Biped >as( #e%al Char%es and )T5D(

'ater 2 STB*. ,s this correct

Thanks for your help&

Eeply

o

Satyam

on Au%ust 7/( 70/; at ?0: pm said

/. 5o builder in ,ndia is allowed to char%e for Car Barkin%( accordin% to law. Pou can file

a case a%ainst the builder. And therefore you will not find any le%al document pertainin%

to service tax on car parkin%( as it shouldn$t be char%ed in first place. )Lowever( builders

don$y follow this 3 thanks to absence of any law enforcement a%ency in real estate*.

Eefer this link -http""apartmentadda.com"blo%"70/;"07"/K"rules-pertainin%-to-parkin%-

spaces-in-apartment-complexes"

Most builders add parkin% char%es to flat cost 2 char%e @.;1 ST only.
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-729http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=729#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-730http://apartmentadda.com/blog/2015/02/19/rules-pertaining-to-parking-spaces-in-apartment-complexes/http://apartmentadda.com/blog/2015/02/19/rules-pertaining-to-parking-spaces-in-apartment-complexes/http://apartmentadda.com/blog/2015/02/19/rules-pertaining-to-parking-spaces-in-apartment-complexes/http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-729http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=729#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-730http://apartmentadda.com/blog/2015/02/19/rules-pertaining-to-parking-spaces-in-apartment-complexes/http://apartmentadda.com/blog/2015/02/19/rules-pertaining-to-parking-spaces-in-apartment-complexes/


10/32

7. ,f you are talkin% about ,nfrastructure evelopment Char%es ),C* 3 These char%es are

paid directly to state %overnment by the developer for developin% the infrastructure for

the proect. The char%es vary from state to state. There is no Service Tax on ,C. )More

here -http""www.caclubindia.com"experts"service-tax-on-underconstruction-flats-

//N=0;K.asp*

@. /=1 on >as pipeline( #e%al Char%es( STB is 6kay.

Eeply

Pradeep

on Au%ust 77( 70/; at @7N pm said

Thanks a lot Satyam& The information you have provided is of %reat value to me.

?.

Prasanna

on September 7( 70/; at K@; am said

Li Satyam(

Thanks very much for your valuable information.

, still do have !uery on the same issue.

,$m in the process of purchasin% a ready to move in flat in chandapura( an%alore. Total

cost is Es.@;./K lacs.

uilder is char%in% me Service Tax I VAT as /0.;1 on )asic cost( Car Bark( DSC6M*.

Le claims that he has not received his 6ccupancy Certificate and he is not intendin% to

%et in : months.

Can you please advice if this is correct.
http://www.caclubindia.com/experts/service-tax-on-underconstruction-flats-1184059.asphttp://www.caclubindia.com/experts/service-tax-on-underconstruction-flats-1184059.asphttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=730#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-733http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-783http://www.caclubindia.com/experts/service-tax-on-underconstruction-flats-1184059.asphttp://www.caclubindia.com/experts/service-tax-on-underconstruction-flats-1184059.asphttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=730#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-733http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-783


11/32

Thanks in advance.

Eeply

o

Satyam

on September @( 70/; at :@: am said

Mr. Brasanna

'e can$t say anythin% about whether /0.;1 of flat value is actually %oin% as service tax

I VAT or not unless you ask for the break up of tax components.

Some builders purposely don$t share the break-up to avoid confusion. 6n an avera%e( the

sum of service tax and VAT is between K-/71 based on construction cost 2 land value.

Satyam

Eeply

Prasanna

on September @( 70/; at N=@ am said

Thanks Mr Satyam

N.

UPKAR

on September @( 70/; at ;@/ am said
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=783#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-790http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=790#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-792http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-789http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=783#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-790http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=790#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-792http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-789


12/32

,f today i buy a flat in move in position from builder service tax is applicable on it or not

Eeply

K.

dinesh

on September @( 70/; at N@? am said

lat is constructin% by land owner throu%h a developer. land owner %ettin% =01 of flats

and developer :01. i am purchasin% flat from land owner$s share from land owner.

whether i have to pay service tax and vat at the time of re%istartion

Eeply

/0.

Manish

on September ?( 70/; at =;; am said

o , need to pay VAT if , buy a ready to move-in flat from the ori%inal owner

Eeply

//.sneha

on September /0( 70/; at 70; am said

Li(

, am from Bune. My underconstruction property a%reement value is Es 7??77?7. Blease

help me to calculate how much total VAT and ST i need to pay on total a%reement value.
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13/32

, have received Es N@000 as VAT and Es 7?000 as ST. Low to validate this amount.

Thanks

Eeply

/7.

Surbhi

on September /0( 70/; at /0@ pm said

ear Satyam(

Thanks for the valuable blo% for resolvin% most of the !ueries related to Broperty but i

still have some !uery. Can you please answer my below !uery

, have shortlisted a property in Lyderabad. The property value is =000000 )'hite* out of

which @000000 is Broperty cost based on Circle rate and they have made Construction

A%reement

on the difference amount. So it is like below

A* Total Broperty value =000000

* Circle rate property cost @000000

C* Construction a%reement /000000

The builder is char%in% Ee%istration char%es :1 on * only )5ot on C* which seems

correct.

5ow he is calculatin% S Tax and VAT with different rates on * and C*.

S Tax on * is @.;1 while on C* is ;.:1. 'hy different rate of S Tax for C*

VAT is /.7;1 on * while on C it is ;1. 'hy different rate of VAT for C

Many thanks in advance.

Surbhi

Eeply
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14/32

o

Vee

on 6ctober /=( 70/; at /;/ pm said

Li( Lave u paid the ST and VAT as per builder demand or not. And have u %ot any more

details on this. Bl share it here.Thanks.

Eeply

o

Vandana

on 5ovember 7K( 70/; at ;7/ am said

ear Surabhi(

'e also purchased a under-construction property in Lyderabad. 'e too have a similar

case of different taxes on Sale a%reement )circle rate * and construction a%reement.

,nitially they made two different a%reements statin% that it will help us save taxes. ut

now because of hi%her tax in construction a%reement );1 VAT I ;.N1 ST*( we will end

up payin% more tax. o you have any info on this

Eeply

/@.

anurag

on September /=( 70/; at =/N pm said

Li(

, %ot possesion of my flat in 6ctober 70/@ and re%istry of flat has also done . , am livin%


15/32

in this flat from that time. /0 days back( builder has raised a demand a%ainst VAT

payment.Should , pay the amount after 7 years of livin%

Eeply

o

Harsha

on ecember 7N( 70/; at //7= am said

hi Anura%( did you pay the amount

T'( you shouldn$t as Mr. Satyam has clearly explained in the blo% above( iff( you have

the 6ccupancy"Completion Certificate

#et me know so that others are aware

Thanks(

Larsha

Eeply

/=.

Kamlesh

on September 7@( 70/; at :7= am said

Li(

, bou%ht a flat in 70/@ in thane district )mumbai* and %ot it re%istered. Lowever( builder

has now sent in 70/; a notice to handover amount of Service tax )@.0K1* and VAT )/1*

to him so that he can pay to local body.

My !uestions are

/. ,s the percenta%e of these taxes correct

7. Can we ask for completion certificate before handin% over the amount as we haven$t
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16/32

received one

@. 'hat are the implications if we don$t pay this amount

=. Low do we know the builder is payin% that amount to %ovt.

;. Can we pay this amount by ourselves

Many Thanks(

Uamlesh

Eeply

/;.Rajesh Viswanathan

on September 7N( 70/; at /;: pm said

, am plannin% to buy a @ LU flat in Lyderabad. The total cost is =: #acs and , paid an

upfront cash of /0 #acs and the remainin% via S, #oan. 5ow the builder is askin% for

stamp char%es of //.;1 )Stamp duty :1 I Vat /.7;1 I Service Tax =.7;1* on the total

cost i.e. =: #acs F ;.7K #acs. ,s this correct or am , %ettin% fooled by the builder. Pour

timely response is appreciated.

Eeply

/:.

Tanay

on 6ctober /( 70/; at ?/7 am said

ear satyam(

Eecently( , purchased a flat in 8harkhand. , have paid to builder service tax( stamp duty(

re%istration char%e.

5ow buidler is askin% VAT. Can you please %uide me whether i should pay or not.

waitin% for your response.
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17/32

Eeply

/?.

Anupam Singh

on 6ctober :( 70/; at /07 pm said

, am holdin% a lat in 5oida sector 3 /=@ and , need to make final payment to builder 3

Victory ,nfratec Bvt #td. So re!uired your su%%estion onto few below mentioned topics.

/* Blease let me know the current service tax which are effective from 0/-:-70/; for

below component.a* SB

b* B#C

c* DHTEA covered car Barkin%.

d* ual Meter Char%es.

e* #ease Eent )Bayable to 5oida Authority*

f* ,MS

%* Dxtra Bower ack-up

h* TL 3 iber Cable

i* Maintenance Char%es

My builder is char%in% /=1 service tax for all above except SB.

7* Confirm me reak Rp of / 1 TS amount which is applicable for property above ;0

#akhs. oes ,t applicable only if your SB or SBIB#C or SBIB#CIAll 6ther

Component amount %oes above ;0 #akhs.

Eeply

/N.

IMRAN


18/32

on 6ctober /?( 70/; at N=/ am said

LD##6 S,E(

, LAVD A WRDEP ED>AE,5> RP,5> A 5D' #AT. TLD #AT ,S A#M6ST ,5

EDAP B6S,T,65 2 , LAVD 65D M6ED TLA5 :;1 6 TLD BAPMD5T.TLD

R,#DE ,S DMA5,5> MD T6 BAP TLD SDEV,CD TAH A#TL6R>L , LAVD 7

M65TLS #DT T6 6 TLD R## BAPMD5T 6 TLD #AT.SL6R# , BAP TLD

SDEV,CD TAH 56' 6E ATDE TLD R## BAPMD5T. , PDS.',TL,5 L6'

MRCL BDE,6 6 T,MD , CA5 6 TLD ED>,STDEAT,65 , , BAP TLD

SDEV,CD TAH 2 VAT 56'.

Eeply

/K.

payal

on 6ctober /K( 70/; at @@@ am said

has the builder a ri%ht to re%ister and possesion of a ready to move in flat if he has not

received the completion certificate

Eeply

70.

jay

on 6ctober 70( 70/; at ;=/ am said

Li

, am in an%alore.

My builder says only @01 of the total cost is land value and ?01 is construction cost.

And tax calculation is %iven like this

VAT /=.;1 of ?01 of construction cost


19/32

Service Tax @.;1 of )flat costIclub houseIwater2Dlectricity char%es*

,s this correct in an%alore

Eeply

7/.

Aashish Jain

on 5ovember @( 70/; at /77/ am said

ear Satyam

'hen the builder should ask the service tax and VAT for under construction property.

'hat should be the timin% for it

And how do person ensures if that amount %oes to %overnment.

Thanks a lot for your advice

Aashish

Eeply

77.

Sahira

on 5ovember ?( 70/; at N@/ pm said

Lello sir

, m from ban%alore . My underconstruction property re%istration value is Es =000000.

Blease help me to calculate how much total VAT and ST i need to pay on total value .

Low to validate this amount.and whether any chan%es in re%istration valuesin ban%alore

now

Thanks in advance

Eeply
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1041#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1097http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1097#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1117http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1117#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1041#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1097http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1097#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1117http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1117#respond


20/32

[email protected]

on 5ovember 7@( 70/; at :;@ am said

ear Sir(

, bou%ht an under construction property in Bune and %ot the re%istration done in ec last

year. , had paid @;1 of the total cost( with ST and TS etc as applicable ( at the time of

Ee%istration and :;1 )lumpsum* balance was to be paid by eb 70/; as per a%reement(

as the proect was supposed to be completed by March 70/;. ut ue to some Approval

,ssue with BMC( the construction was stopped. The uilder in my case a%reed foralance payment to be made only after construction was complete. 5ow construction has

commenced recently and may %et completed by ec 70/;

5ow my Wuestion is Suppose uilder Completes the proect and obtains 6C. and there

after , Make alance :;1 Bayment( then will the ST ( Vat etc will still be applicable on

the balance amount.

Also whether Swach harat Cess will be applicable Sale of lat.

Eeply

7=.

asha n

on 5ovember 7@( 70/; at @0? pm said

, have purchased a flat in ecember 70/0 for which we made full payment by eb end

70//. 'e shifted in May 70// and the 6C of the buildin% was received in May 70//. ut

our a%reement was in Au%ust 70//. Can you please %uide whether we have to pay VAT

and Service Tax.

Eeply


21/32

7;.srikanth

on 5ovember @0( 70/; at //0; am said

Li(

, am plannin% to purchase a flat in Lyd)Eeputed construction compnay*( which costs

around =7 lakhsI =.; amenties. uilder is askin% to pay @.:/1 service tax I /.7; 1 VAT

I Ee%istration char%es. 'hen , check with other apartment builder they said they wont$

char%e anythin% for Service Tax I VAT.

'hy the bi% construction company char%es Service Tax I VAT

Thanks(

Srikanth

Eeply

7:.

Kotesh

on 5ovember @0( 70/; at ;@/ pm said

Li(

, am plannin% for ready to move apartment in hyderabad. o you have any pre-cautions

)or* check list that we need to take care before we have to pay some down payment( so

that we are not struck with builder.

Thanks(

Uotesh

Eeply


22/32

7?.Tina

on ecember =( 70/; at //=K am said

Li(

, have booked flat in under construction bld in 70/7. i have stil not %ot the possession.

work in on %oin% now. do i have to pay service tax 2 vat for my flat. bec i have already

bein% asked to pay appox of ; lacs rs additonal as )electric meter( development ch%s(

water ch%s( amenities ch%s( etc*

so if i have to bear service tax and vat also the amount will be much hi%her to pay.

Blease %iude as m not aware of all this.

Eeply

7N.PuneBuyer

on ecember N( 70/; at //@; am said

ear Dxperts need help on Service Tax and VAT payment

Eecently , have booked lat in the Bune and done the a%reement in last month

while bookin% builder told me to pay the Service Tax 2 VAT and %ave the cost( but

builder was a%ree to pay the Service Tax at the time of possession.

below are the cost details 3A%reement cost)asicIBarkin%Ievelopment char%es etc. * 3 =0(N0(000"-

Service Tax)@.;1* 3 /(=7(N00"-

VAT)/1* 3 =0(N00"-

Stamp duty):1* 3 7(==(N00"-

Ee%istration 3 @0(000"-
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1175http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1175#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1184http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1175http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1175#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1184


23/32

-

T6TA# -=;(@N(=00"-

below is the se!uence so farO

/;-Septemeber 3 booked flat 3 Baid bookin% Amount 3 Es. ;0(000"-/;-5ovemeber 3 efore A%reement , paid Es. //(@/(:00"- )includin% bookin% amount*

Baid Total F 701 of a%reement cost I Stamp uty I Ee%istration I VAT F //(@/(:00"-

on 70-5ovember we did the a%reement)Ee%istration*( while a%reement , come to know

that builder %ot the completion certificate from Bune Municipal corporation for the flat of

ate /@-5ovember-70/;.

uilder is %ivin% possession in 8an -70/:. After a%reement in emand letter he

mentioned the Service Tax with remainin% N01 of A%reement cost.

As , made Bayments after %ettin% the Completion Certificate( my !uestion is should ,

need to Bay the Service Tax to builder or 5ot

Blease help.

Eeply

7K.

Rahul

on ecember /=( 70/; at //=: am said

Lello(

, have purchased a flat which was under construction and %ot it re%istered with an

a%reement value of 7: lakhs( however market rate i.e. %overnment price of the flat is

around @= lakhs.

6n which amount do i need to pay the service tax( will that be 7: lakhs on which

a%reement is done or @= lakhs which is %overnment value)Market Eate* of the flat at the

time of re%istration.

Eeply


24/32

@0.Surendra

on ecember /K( 70/; at ?/@ pm said

Eeally nice article. >ood information for the newbies of real estate.

Eeply

@/.

Manzar

on ecember 7=( 70/; at /0/? am said

ear Sir(

, have booked an under construction commercial property in Uolkata. ,t is on lon% term

leasehold basis for which the builder is char%in% KKK years lease rent upfront. #ease rent

is nominal amount so no problems. ut on the entire cost of purchase they are char%in%

full rate of Service Tax i.e. /=.;1 without any abatement on any component. They are

sayin% that since it is leasehold property so full service tax of /=.;1 is payable on the

entire purchase amount.

, think the the provisions and abatement you mentioned in your blo% is applicable to both

freehold and leasehold properties whether residential or commercial.

Ee!uest you to please clarify this to me. Can the builder char%e full Service Char%e

without any abatement on under construction leasehold commercial office spaceEeply


25/32

@7.Bheema Naidu

on ecember 7=( 70/; at /0@K am said

ear Sir(

, purchased underconstruction %ated community appartment in the Kth floor in hyderabad.

, purchased in April 70/;.

The base price serice tax is @.;1.

Blease clarify whether the floor rise( east face and corner flat comes under /=1 service

tax'hat about le%al char%es and maintenance char%es whether they are applicable /=1

service tax

Thanks

Eeply

@@.

milind mohite

on ecember @0( 70/; at N== am said

Lello(

, purchased under construction flat in 5arhe Bune and a%reement done on /0 sep 70/;.

Can u pls su%%est when i have to pay service tax and Vat to builder.

,s there any chances of service tax to becomin% less from @.:7;1.

Also i late to pay service tax then there will be extra char%es

Eeply
http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1235http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1235#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1244http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1244#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1235http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1235#respondhttp://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/#comment-1244http://www.absolutehabitats.com/service-tax-and-vat-for-flats-apartments/?replytocom=1244#respond


26/32

@=.AbdurRC

on 8anuary /( 70/: at 7;= pm said

, am purchasin% ready to move flat in Lyderabad. The builder is char%in% Sales Tax

@.:7;1( Municipal Taxes 0.:;;1 and VAT /.7;1. Can you please su%%est if , need to

pay these.

Eeply

o

AbdurRC

on 8anuary /( 70/: at @0: pm said

,ts Service Tax.. not sales tax please reply on this

Eeply

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Vat and Service Tax

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Transcript of Vat and Service Tax