VAT and Service Tax on FLAT Purchase

Hi Team,

              I am planning to buy a 2 BHK flat in bangalore.

The base cost is (No.of sqft * Sqft price)  is 30,00,000 Rs

Car Park                                                          is 100000     Rs

Water and Current                                         is  50000      Rs

Club House                                                     is 50000       Rs

The builder has informed me that, VAT and Service Tax together it will be 7.4% and should be on the total cost  i.e 3200000 rs (Base Cost + Car Park + Water + Current + Club House)

Could you please clarify me ,

1) On what components we need to pay the VAT and Service Tax ?

Regards,

Anil

1.  you have to know that service tax /VAT is applicable to you in your state or not  ? 

2. VAT/SERVICE TAX APPLICABLE   FOR THE BUILDER NOT FOR PURCHASER

3.only have to pay  registration charge as applicable  to Market Price.

4. Water and Current  Rs  is  50000/-  to much charge .   

Thanks for the reply, Property is in KARNATAKA.

As you have mentioned, VAT and Service TAX should be paid by the builder but ultimately they are charging on consumer.

Could you please let me know if you are aware of VAT and SErvice tax percentage in Karnataka?

Hi, I have taken a flat on 11/11/2011 at that time builder had not told me that i will be charged Service tax and Vat and now he is asking me for it  .The total cost of my flat was Rs 14 lakhs and now he is asking me to pay   more Rs 51125 .It is not mentioned in my agreement any where that i have to pay Service Tax and Vat to him so please let me weather i have to pay this amount or not.

Hello,

I have a booked an apt in Bangalore, currently in prelaunch stage.

Apart from Basic cost, the builder is charging for Car park, Club house, Floor Rise, PLC. Could you please guide me if builder can legally charge us for these facilities (Car park, Club house, Floor Rise, PLC) . If no which are those which he should not charge us for

Further to this he is asking to pay following taxes, which i feel are on the higher side. 

• Service Tax : ATC(%) =  12.36% (40% Const Value)      = 4.944%
• Service Tax : Car Park  / Club house / PLC                      = 12.36% (each)
• Service Tax (Water/Power/Generator/Gas/Legal/Maint) =  12.36% (each)
• VAT(%) = 14.5% x70% of Const Value)                             = 10.15%

Could you please advice me if these taxes (%) are inline with the legal/regulatory framework. If not what are guidance values/percentages..

PLease let me know if you need any more information on this..

Thankyou in advance.

Regards

GG