I booked a flat under 'Haryana Govt Affordable Housing Policy, 2013' and was successful candidate in Draw of Lots.
Basic sale price of Flat is 20 Lac. It will be completed in 4 yrs time for possession.
In the Installment plan Builder has asked for Service Tax @ 3.5% on First Premium and so on for all other premiums.
I want to know:
a) Why is developer demanding service tax. Is apartment Construction and sale is under service ?
b) Will there be VAT also on this, which developer can demand ?
Thanks
