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.
