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Real Estate Forum on Aservice Tax

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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.
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