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How Much VAT & Service Tax Should be Paid During Property Purchase?

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How Much VAT & Service Tax Should be Paid During Property Purchase?

Last updated: September 7 2011
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  • How Much VAT & Service Tax Should be Paid During Property Purchase?

    IS VAT and Service Tax applicable now ?
    And how much is it ?
  • #2

    #2

    Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

    And if yes then when i am supposed to pay this VAT & Service Tax ?

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    • #3

      #3

      Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

      The rate of Service Tax is 4.12 % and VAT is 2% of the billed cost. It is applicable for all apartment having more than 8 dwellings and above a specified land area... I am not sure about this aspect... Experts please correct me !!
      I have observed that these charges are applicable even when we pay for infrastructure and amenities charges or for Car park during purchase of a flat !

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      • #4

        #4

        Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

        I had booked Apartment in 2008 and it is yet to be handed over. Promoter has been charging service tax on the instalments. Now the Final Instalment is pending, pl advise whether Service tax is applicable for this property.

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        • #5

          #5

          Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

          Yes, the service tax is applied wef 1st July 2010 2.575% on the service provided by the builder on / OR after 1st July 2010.

          But I also heard that the high court has declared 'STAY' on the same as the Builders Association had appealed against this Service Tax. Result is yet awaited.

          Apart from this all, some of the builders are demanding for the Service Tax and few are not even taking this seriously and not demanding.

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          • #6

            #6

            Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

            Must Read:: Meaningful Information is available on - http://www.simpletaxindia.org/2010/0...rvice-wef.html
            Last edited September 7 2011, 03:25 PM.

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            • #7

              #7

              Re : How Much VAT & Service Tax Should be Paid During Property Purchase?

              We have to pay service tax. I have recently taken over my flat and i have paid service tax. Service tax is charged on the construction cost excluding land cost. Builders even charge interest on the service tax components. I paid around 1.6 lakhs for around 34 lakh construction cost. Therefore please be planned to shell out this money.

              warm regards
              ganesan

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