Dear Members,
I have booked a flat in Mumbai in the month of September 2014. It is an under construction property where the builder/developer has promised possession by Dec 2014.
I have paid my earnest monies while the rest is paid by bank loan.
The builder at the time of booking the flat mentioned in his list of payments:
1. Consideration Value of flat including one covered parking Rs.2,78,02,500/-
2. Service Tax of 3.708% on the consideration value Rs.10,30,917/-
3. Registration & Stamp Duty:
i. Stamp Duty - Rs.13,90,125/-
ii. Registration - Rs.30,000/-
iii. VAT @ 1% - Rs.2,78,025/-
Total (3 i to iii) = Rs.16,98,150
4. Society Charges & Other Charges including -
i. Share Money - Rs.350/-
ii. Adhoc Maintenance for 2 Years - Rs.2,84,840/-
iii. Corpus Fund - Rs.35,100/-
iv. Society Formation - Rs.20,000/-
v. Club Membership - Rs.50,000/-
vi. Legal, Electric & Water Connection - Rs.52,650/-
vii. Development Charges - Rs.87,750/-
Total (i to vii) = Rs.5,40,690/-
viii. Service Tax on Other Charges = Rs.7,802/-
Now the builder is demanding Rs.26,005/- as Service Tax on Other Charges with the explanation that the Service Tax was earlier calculated on 3.09% and now it has been increased to 12.36% hence the increase from Rs.7,802/- to Rs.26,005/-
I would appreciate if members help me with the following:
1. What components constitute Other Charges from the above mentioned list?
2. Which of the above listed components would attract Service Tax?
3. What would be the percentage at which the Service Tax should be calculated on the components attracting Service Tax?
Thanx in advance for your help and support.
Ramesh
