19 September 2012
I have query regarding applicable VAT and Service tax on property. I have purchased flat in Pune, Maharashtra. Agreement was executed in July 2010 and I got the possession in 2011. Can you please tell me the applicable service tax and VAT rates for me? Builder is telling I have to pay VAT by 5% and Service tax by new increased rate(I think it is 3.6%). Please advise.
24 October 2012
Mr Prasad, I have already answered many queries on this issue.Just click my name and get it. However,if you have not yet solved the problem, here are some tips. VAT @5% is applicable on total price-(land cost,cost of amenities and any other charges collected for electricity and water connections and registration etc),which is the construction cost.So,it generally comes to2-2.5% of the total price of a flat.If they are collecting tax on the whole amount paid ,then , it is 1% only.......MJK
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