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Real Estate Forum on Service Tax & Vat On Under Construction Property

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Q: what is service tax and vat on underconstruction apartment?
is it reflected in AOS or sale deed anyhow?
are amenities corpus taxed?

Latest Answer: Stamp Duty charges for under construction property in Telangana is 4%, transfer Duty is 1.5% and Registration fee will be 0.5%. You can get more on this site plz. click the link http://registration.telangana.gov.in/readyreckoner.jsp

Q: Based on the recent Delhi High court order - the service tax paid for under construction apartment will be refunded with 6% interest.

Can you let me know how do I request for a refund ?
Latest Answer: Thanks Rakesh. Is there a procedure to claim the refund from the revenue department? what documents to be submitted? your help is appreciated.

Q: When i purchased the flat in Guwahati in October 2015, the building was ready to move. the builder asked for ST and VAT money and i paid. But builder has not given me any challan yet.

Also on similar note, I asked yesterday for the project completion certificate (as i know that after project completion certificate is issued, we dont need to pay ST) , he said they have applied for Completion certificate. How can they apply for it now one year residents started moving in?

Did they builder play a foul game? What is the possibility? What should i do?
Latest Answer: Hi folks!! VAT and Service Tax are not applicable for “Constructed Property”. It is only applicable for under construction flat. Secondly, VAT may vary from state to state as it is state subject but service tax is uniform across country i.e. 15% as it is fixed by Govt of India from !st June 2016.

Latest Answer: In Technical terms CC means Commencement Certificate and not completion certificate. YES, builder HAS to charge Service tax and VAT for flats sold even before or after obtaining CC. once the building is complete, government issues OC which means Occupancy Certificate, and flats sold / registered after that are free of Service tax and VAT.

Q: The total agreement value will be Rs.10000000/- approx. Builder has got CC but not OC. Now I would like to know what Rate of VAT and Service Tax is applicale and on which amount. I came to that since the builder got CC no VAT or Service Tax is payable. PL enlighten me the actual position of these inditrect taxes.........

For your information area of flat is 780 sq.ft Carpet and 873.6 is Built-up...
Latest Answer: Hello Sir, Service Tax and VAT are paid only for under construction properties. And Land cost is exempted from both these charges. A property is termed "under construction" till the builder receives a "completion certificate" from the relevant authorities. If the entire amount for the property purchase is paid after the receipt of a completion certificate, there would be no service tax levied on the purchase of the property.

Q: bought flat with 85% down when they said they will give possession in dec 2012 but now its may 2015 and they need more money in name of service tax inbtrest which they never told us before
Latest Answer: Hi Aquib, Before taking any legal action, check you agreement whether there is any clause mentioned for compensation on delay possession and secondly, interest on service tax. If it is mentioned then consult a good legal expert and follow what he says.

Q: Hi
I had purchased a flat in taloja in sep, 2013. Builder has already got occupation certificate from CIDCO in oct,2012. Now he is demanding vat tax 1% from me. Without that he will not give possession to me.. I have already paid other dues. Pls suggest do I need to pay vat tax 1% to builder.
Latest Answer: Hi folks, Is Vat and Service Tax is applicable on ready-to-move-in property, single residential unit, independent house, villa, bungalow and low cost housing? Should builder issue two separate receipts for both VAT and Service Tax?

Q: I have purchased new flat in Oct 2012 in Panvel,Navi Mumbai.I have paid 20% (4Lakh)amount and made 80 (12 lakh) % loan.i confuse about who's will pay service tax and VAT and how much?
Latest Answer: i buy flat in ncr Delhi on 2016& sell in 2026 ,what is tax

Q: I recently booked an under-construction apartment (95% work done) of super built up area 970 Sqft. in Bangalore. The builder sales guy calculated Service Tax (12.36%) on 25% of construction value ( Flat Cost + Car Parking - Land Cost). But after booking during agreement he is saying that norms has changed now and service tax will be charged at 40% of the construction value. He is saying that norms changed since 1-Jul-12 however they did not get confirmation and now only got the confirmation. Please suggest what is current service tax rule is. He is making 2 agreements (1 for land and another for construction). And he did not reveal the modified service tax till I paid booking amount. Also he is asking for 4% VAT on Construction Value. Is it correct and is saying that later on he may charge service tax on maintenance cost as well. Please advise.

Latest Answer: Is the VAT and Service Tax applicable for new flats?

Q: I booked a property in 2008 and made 80% of the payment by 2009. Please let me know:

1) Shall I be paying service tax on the payments made by 2009.

2) Now the property is ready and the builder is going to hand it over in the month of Jan 2012. The builder is asking for payment of service tax and VAT for payment towards 12 month advance maintenance, corpus fund and also on legal charges. Is it correct?

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