Hi, Why is both VAT as well as service tax is levied while buying an apartment?

Q: What is service tax and why is it levied along with VAT while buying an apartment?

Mahi garg, Bangalore

6th October 2011

Property Tax in Bangalore

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But, it is against the constitution to levy both the taxes. Many buyers and builders such as L&T and Rahejas have filed a case and the matter has reached Supreme Court now. – Their argument is that there is no meaning for taxing the sale of property when they have already paid stamp duties.

Soundarya G S, Bangalore

6th October 2011

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The VAT tax was introduced in 2005. It is derived by multiplying 12.5% out of 70% of the cost of apartment plus cost of facilities it offers. But, the service tax is leviable only when the builder offers services such as swimming pool, garden, staircase, alterations or repairs of the building.

Kanthi Sridhar, Bangalore

6th October 2011

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