Vat and service tax

Hello,

I have brought FLAT in bangalore in July 2011. total cost of the flat is 40 lacs and registration will be approx 3 lacs. Now the flat is ready  in possession and builder is asking me to pay additional 2.25lacs on the name of service tax and VAT. My first query is do we need to pay VAT and service tax. if yes, then what is the percentage and on what value do i need to pay.

Thanks,

Ramesh

 

Yes, in the facts of your case, you have to pay service tax on all sums paid after 1-7-2010 for purchasing under construction flat. The rate is 2.575% of amounts paid after 1-7-2010.

For VAT please consult a local consultanat as VAT rules vary from state to state.

Hello Majid,Vineeth,

thanks for the info,

is the service tax to be paid on the entire amount ie., (Basic cost+amenties) + car parking.

Could you please provide the actual breakup.

Yes, the entire sum. The service tax is 2.5% + 3% cess on ST = total 2.575%

VAT is payable in Maharastra wef 1.4.2010 @ 1% on registered value. however ST is payable across India 2.5%+3%. 

Not sure about Karnataka. check with local consultant.

Finance bill 2013 regarding service tax applicable on restaurant.

If taxable service of  40% is derived from the sale value, then this 40% of sale will attract VAT? OR not?

please provide detailed explanation for my query.