Vat & service tax on flats in bangalore

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 April 2014 I have registered a flat(1510 sqft) for Rs.45.50 lacs(puchase value) for which guidline value is Rs38,19,300. Builder has charged me additional amount of Rs.218,118/- for the same.

The builder has given the following explanation:
Diference between Regn & guildline vlaue Rs.730,700
VAT @14.5% 105,894
Servie Tax @12.36% 90,315
eligibility of Income tax @30% =219,090 - 10% of 219,090 is 21,909
Total amount collected 218,118.

I am not convinced from the above.

Flat is registered on 1st February 2014 and construction is completed n possession was given on 16 March 2014.

Please confirm whether the above additional amount collected by is correct and legal?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

14 April 2014 Ask for break up of the total amount charged which also includes VAT and ST. Then you can know whether the amount charged now is correct.The amount of Rs7,30,700- in excess of gidance value is generally not declared to the govt by the builders.Hence no vat or st should be charged on it.Also charging 30% IT is unnecessary.....mjk

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Srikanthan S

Jayanti Visani

Vishal Dave

Ahamed Kabeer

svgovindaraju

Subscribe Now

Vat & service tax on flats in bangalore

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA