on VAT & Service Tax
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Hi All,
Please suggest how this VAT & Service Tax works. I recently booked apartment and they are charging 5.5 % VAT & 3.3% Service tax and other builders are charging 9.2% in all. I got to know this cost also goes to Builder as a profit. one of my friend he bought and didnot paid one rupee also for his apartment as VAT or Service Tax.
I read below article which says VAT will not be in Lakhs. Please suggest if you have any information on this.
http://www.dnaindia.com/mumbai/1735967/report-dont-let-builders-fool-you-vat-wont-run-into-lakhs
Thanks,
Sunil
2 Answers
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Hi Sunil,
Please take a look at
http://harshasagar.com/questions/info-on-vat-servicetax-registration-charges%e2%80%8f/#answer-1723
The actual amounts vary based on the construction cost to land cost ratio.
Regards,
Harsha
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Additionally, the Service Tax is levied only on under construction apartments and for the payments made to the builder before the apartment is issued a completion certificate. If its a resale property of the purchase was made after the completion certificate was issued or if the property construction was completed prior to July 2010 then no service tax is payable.
