I am planning to purchase a flat which is under construction.
Builder is asking me to pay VAT @ 5% of total cost + service tax @ 3.5 % of the total cost
Total Cos t=Rs. 40,00,000.
But actual Registered value of the flat is only Rs.19,00,000.
Please let me know whether VAT and service tax has to be paid on Total cost or registered value.
Whether service tax has to be paid?
