VAT & Service Tax

Q: I have been scouting for multiple projects & have enquired the VAT and service tax percentages.

The VAT percentage is 4% and 10.3% of 33% of construction cost as service tax. The VAT and service tax in this project is much higher - did any of you clarify this?

rakeshrrr,

17th April 2011

Pruksa Silvana Villas, Budigere, Bangalore

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Bangalore Budigere Pruksa Silvana Villas

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Hello Sir ,

Please clarify on the VAT rules on underconstruction property in Bangalore

The property is under JDA with landowner . The builder is giving two agreement (1. Construction ,2. Sales) Could you clarify on the tax as below charger by builder and what is right amount -

By builder
1. VAT = {(Basic cost + Car parking +bescom/bass + club membership)*9.5}
2. Service TAx = {(Basic cost + car parking +,bescomm+ club+ maintenance + corpus fund)*25%*12.3}

Please clarify and suggest.If possible share the reference so that I can share with builder