Hello, my name is Rishabh and I have booked a property in Pune. It is an Under Construction Property with possession date confirmed as Dec, 2013. Right now, the construction has just started and plinth work is going on. The builder is asking for payment of Service Tax and VAT at the time of agreement which I will be doing this month.
My question is when builder has to pay the VAT or Service Tax to the government? Is it after the construction is finished or its applicable on per booking basis. Also, should I ask for a government receipt over the actual payment of Service Tax and VAT.
I am confused about paying him now as nothing is ready in the building as of now.
Thanks in advance..