Sale of flat

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TARIQUE RIZVI (Querist)
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17 September 2014 Suppose a builder has sold a flat as on today for a sum of Rs 1 Crore. Vat and Service Tax I have worked out as follows:

Sale Rs 1,00,00,000
1% Vat Rs. 1,00,000
Total Rs. 1,01,00,000

Less 25% of 25,25,000 (a)
Balance 75,75,000 (b)

Service Tax @ 12.36% of (b) 75,75,000
Rs 9,36,270

Now total deal will be as follows"
Sale Value 1,00,00,000
Add 1% Vat 1,00,000
12.36% Service Tax 9,36,270 as above

Total 1,10,36,970

Am I right sir,

Annu Agarwal

Annu Agarwal (Expert)
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18 September 2014 As per my view service tax shall be calculated as below:
First lets make the following assumptions:
1.The Flat is under construction.
2.Gross amount charged includes the value of land.
3.The carpet area of flat is above 2000sq ft and the value is more or equal to 1crore.

Now
Gross amount charged =1,00,00,000
Less:70% abatement as per notification no.2/2013 dated 28.02.2013=75,00,000
Taxable value=25,00,000
Service tax @12.36%=309000

vat shall be 1,00,00,000*1% i.e. 1,00,000

so total amount shall be
1,00,00,000+1,00,000+3,09,000=1,04,09,000

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