I have purchased new flat in pune.
At time of agreement, builder not gave any information about service tax and VAT.

I did Agreement on 11 Octomber 2010.
As flat was ready so Bank has disbursed all amount of loan (22 lakh) dated 18/11/2010. at one time installment (Only one payment done by bank.)

According to me Bank is done full one time disbursement of loan only if Building is having completion certificate(ready possession flats).

So Now Builder is asking about service tax and VAT amount.

Can you please tell me whether in my cases service tax and VAT is applicable or not
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  • Originally Posted by YashRE
    Thanks Jitu_Sir and punerebuyer for your reply.

    Some of the distinctive specifications like Make of modular switiches , Provisions for usage (Geyser,exhaust fan,water purifier ,inverter back-up ,washing machine,internet,TV and telephone points), laminated wooden flooring and deorative door is mentioned in Brochure but not in Agreement.
    On top of this I think putting make of the fittings in the apartment and lift in the agreement is very important.

    Am I being resonable in asking Builder to put these specifications and make of fittings/lift in agreement? If Yes, How can I negotiate with the builder to do so?

    Dear YashRE,
    Though it is a must to mention all specifications in Agreement, No builder will specify the make. The reason behind it is most of the brands are finalised at different stages of progress of the project. Moreover by mentioning a specific brand, there are chances that the said brand may not budge while commercials & schedules are worked upon since they are in knowledge of their name being mentioned in the brochure/ agreement. Hence usually if brand is specified then its always said as "equivalent".
    Usually a project takes around 2 to 3 years to complete while new materials which are better & durable are introduced in the market. By mentioning a brand the builder looses an opportunity of choosing a better brand for a given specification. Ofcourse builder shouldn't take undue advantage of this provision and compromise on his quality aspect.
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  • Currently in am paying 3.08 pct service tax on my payment to builder
    Previously rate of the service tax was 2.575 pct
    I know how it is calculated but I want to know since when rate of the service tax is increased from 10.3 to 12.36 pct

    Sent from my Galaxy Note 2 using Tapatalk
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  • Originally Posted by hrishikeshdeo
    Currently in am paying 3.08 pct service tax on my payment to builder
    Previously rate of the service tax was 2.575 pct
    I know how it is calculated but I want to know since when rate of the service tax is increased from 10.3 to 12.36 pct

    Sent from my Galaxy Note 2 using Tapatalk


    The rate of service tax has been increased from 10.3% to 12.36% w.e.f 1 April 2012.

    Here is circular of same from Government of India (Ministry of Finance - Revenue Department) -
    http://www.servicetax.gov.in/circular/st-circular12/st-circ-162-2012.htm


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  • Originally Posted by pawarnilesh
    The rate of service tax has been increased from 10.3% to 12.36% w.e.f 1 April 2012.

    Here is circular of same from Government of India (Ministry of Finance - Revenue Department) -
    http://www.servicetax.gov.in/circular/st-circular12/st-circ-162-2012.htm




    Thank you for your help

    Sent from my Galaxy Note 2 using Tapatalk
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  • Hi Hrishikesh. What is your experience with Gakaxy Note 2 ;) ?
    and what is Tapatalk ... .(sorry these questions always pop up in my mind when I see your posts).
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  • Hi, compu
    Galaxy Note 2 is super awesome phone really a game changer from Sammy. Worth every penny and a great phone

    Tapatalk is app for forums where you can manage and post at multiple forums on the go. It is available on Android Market as a paid app. You can get it on other sites also

    Sent from my Galaxy Note 2 using Tapatalk
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  • Originally Posted by RErookie
    Dear Jitu Sir,

    Thanks a lot for your reply.

    I am a salaried person and do now have a tax consultant.

    Can you please suggest a good tax consultant in Mumbai with a reasonable fee, who would know about the particular Circulars/GR.

    Many Thanks.


    Hello Sir, we are CA in navi mumbai. You can contact us anytime if you need any help in taxation area.
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  • Hi all,

    I had booked a flat in Jun 2017 and paid 10% amount at time of booking in that service tax was included.

    In the month of sep 2017 builder got complition latter, after that in Oct 2017 i signed agreement. Now builder is asking me for service tax and vat. Do i have to pay tax now? Please advice me.

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