Service tax for builders

Sale of flat is liable to service tax from 01-07-2010. Tax is payable only when payment is received prior to completion certificate. 4.12% on gross value of flat or 10.3% on 1/3rd of value.  Value is the gross amount payable to the developer less VAT.

Hello Mr. Unnikrishnan,

I am from Pune (Maharashtra). My builder is charging me service tax on following amounts:

Rs. 34,75,200 (total sqft * rate per sqft) - cost of property

Rs. 10,000 - charges and expenses for formation of association of apartment owners.

Rs. 75,000 - for MSECDL (electricity) meter deposit, transformer charges, common meter installation charges.

Rs. 65,000 - Towards maintenance charges of society for 3 years after possession of said flat.

My queries:

1. According to my knowledge, service tax is applicable only to the construction cost.  Am I liable to pay service tax on 1.5 Lakhs (10,000+75,000+65,000)?

2. Is service tax applicable on amount paid before July 2010? My agreement was done on 14th July 2010 but I paid the booking amount of 5.5 Lakhs in June 2010.

3. Is VAT applicable on construction cost too?

Please help.

Thanks in advance,

Anil