NEED HELP ON VAT & SERVICE TAX ON NEW FLAT

Q: Hi, I am planning to buy a Prestige Construction Property which will cost me 92 Lakhs + Other Charges whose total cost is Approx 102 Lakhs + Registration. Have the info that cost of lad is 2500 INR per square feet.

Can you pls tell me how much is the value of VAT & Service Charge separately ?

THANKS

bitul, Apartment Resident

8th March 2015

Property Tax in Varthur Road, Bangalore

vat & service tax on new apartment

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Replies (3)

Hi All, planning to buy a property in Bangalore and want to know how to calculate service tax on under construction Property?

asim chorasia, Bangalore

18th May 2015

Comment

When you buy a house, you pay for two components:

1) Value of land
2) Construction offered by the developer (service provider)

Service tax is payable only in case of construction services and not on the value of land. In cases where it becomes difficult to ascertain cost of immovable property and service cost separately, government has come up with the provision of abatement scheme where an amount is levied on the total amount.

Sreya Khan, Bangalore

18th May 2015

Service Tax is Calculated 12.3% of the 40% Portion of the Total Cost ex: Basic Cost = 30,00,000/- and other Charges is Say = 5,00,000/- so now 40% of 35,00,000/- is 14,00,000/- know apply 12.3% Service Tax on this Amount and for Vat it is 5% on Total Value , i,e = 35,00,000/- .
The Best way to Calculate Service Tax & Vat is 9.5% of Total Cost Rather Getting Confused Yourself.

Vivek Kulkarni,

9th March 2015

Comment

VAT and service tax is only paid for under construction apartment. Service Tax is 3.09% of Total Cost(means 12.36% of 25% of total cost) and VAT is 5.5% of total cost = 8.59% of total cost.

Seshagiri Mehra, Bangalore

9th March 2015

Comment