Latest Answer: According to the news sources:The commercial tax officials argued before the court that the benefit of composition under the Act is confined only to those dealers, who first construct and then sell residential apartments, and not to those who commence construction, execute a registered deed for the sale of a semi-finished structure, and thereafter complete construction of the apartments. After perusing the provisions of the Act and contentions of the petitioners and the authorities, the bench held that the contentions of the authorities are not tenable.
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
Latest Answer: 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.
Latest Answer: 1 % on Agreement Cost effective from April, 2010 / Service Tax 1/4 of 12.36 that is 3.09 % on Agreement Cost. Once you Registered your Agreement for Sale, you are liable to pay Vat & Service Tax. There is no Service Tax & Vat on Ready Possession Properties.