Sir, I am from Indian Navy (bonafied Defence person). I have purchased a flat in Nala Sopa. I have conclude an agreement in Sep 11. The flat is under construction and possession may take 1 or 2 months. Now, builder has send a notice to me to pay 2.575% of Service Tax and 1% VAT before 31 Mar 12 with interest from date of payment . This amount is huge amount for me, it is approx 1.25 lakh. I have following querries :-
(a) Are defence personnel are not exempted from Service Tax and VAT?
(b) Am I to pay these taxes with nterest from the date I made payment to builder?
(c) If at all I have to pay, have I to pay these taxes now from date of making payment or on Possession of the flat.
Sir, please tell me the rule position about Defence personnel are exempted from such taxes in Maharashtra.
Warm Regards.
