VAT and Service Tax for Flat in Bangalore

Q: Hello All, I have booked a flat in Bangalore. I had registered the flat in my name before completing costruction of the flat due to some bank norms and started with the EMI payment. Now the builder is asking me to pay the VAT and Service taxes. I heard VAT is 5% and Service tax is approx 2.5%. I would like to know how the VAT and Service taxes are calculated by considering the figures mentioned above

Mohan, Bangalore

18th January 2013

Legal in Bangalore

flat in bangalore

vat

aservice tax

emi payment

Follow Discussion

Also see discussions for

Bangalore Legal Legal in Bangalore

Replies (2)

I recently heard that Delhi Government has come up with a new rule that there wont be any service tax for under construction property in Delhi.

Harmeet Kaur,

5th August 2016

Comment

Yeah the Delhi High Court has come up with a new rule that no service tax can be levied in respect of the agreements entered into between buyers and builders for flats which are under-construction.

Abhishek,

5th August 2016

As far as I know VAT is 5.5% and Service Tax is 3.09%.

Aveek Paul,

21st January 2013

Comment