Service tax and vat on house propery purchase

I have purcahsed flat at badlapur. I have already paid the full agreement value to the builder. Now the builder is asking to pay the service tax and vat @ 1 % . I told him that the service tax case is the court of law . I will pay it ehenevr itis applicable but he is disagree with this.

I have boooked this flat on 01.02.10 and paid 20 % of agreement value to him at the time of booking. Now the building is ready and he is asking to take the possession of the flat. But before that clear the service tax and vat amt. . My agreement value is 9,50,000/-

So kindlly advice for the following.

1) is service tax & vat  is applicable to me. if yes then waht is the percentage , tax amount.

2) what amt. i have to pay to builder as service tax & vat on greement value .

3) If i pay him by cash then what proof i have to take from builder

4) Kinldy send any notification , circular , judgement passed by any authority in this regard. I will show the builder this as a proof for paying the sevice tax  and vat amt.

Regds

Umesh

 

 

 

 

Replies (2)

Service tax on residential complex prior to 01-07-2010 is under dispute. Developer is paying tax as precuation. Tax rate is 4.12% on gross amount if composition has been opted. Otherwise , 10.3% on labour element. dificult to get evidence of payment, as it is single payment for the developer.

4.12 % is applicable if the assessee is registered under "works contract". Otherwise he might be imposing 2.575% also or 10.3% depending if he is using the abatement scheme.

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