Sir,
I'm interested in buying a flat under construction from a reputed builder but I think that the VAT and Service Tax are overcharged. VAT is calculated as follows:-
Basic cost (Super built up area x rate/sq ft) + car parking + club house chgs + generator chgs + gas bank chgs + infrastructure devpt chgs = X - Y (land cost of undivided area) = Z
VAT = Z x 9.8%
Service Tax = Z x 4.12%
Are the above items all inclusive in the calculation of VAT and Service tax?
I've heard that VAT is 4% under composite scheme why is it 9.8%
and I've heard that Service tax is calculated as 10.3% of 33% of value = 3.4% ( not 4.12% as calculated)
KIndly clarify
Lakshmi
CAclubindia
