Sir,
I am planning to purchase an under construction Flat in Bangalore. I got the draft copy of the sales agreement (Dual agreement). As per the agreement base price (price / sqft * super built up) is 33Lakhs (the UDS of Land value is 8 Lakh and the cost of construction is 25 Lakhs).As per the Builder sales tax (VAT) @ 9.5% of 70% Basic and Car Park Value [9.5%*(70%*(3304800+150000)) = 229744] and service tax 12.36% of 30% of Basic and Car Park and other charges [12.36%*(30%*(3304800+150000)) = 128104].
Could you please tell me whether the formula to find the service tax and VAT is correct? I understand the builders are not suppose to calculated the Service Tax on the base price and it should be on the cost of construction.
Thanks in Advance,
