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Old May 28 2012, 09:56 AM   #1
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Default VAT and Service Tax on UnderConstruction Property

I have purchased a underconstruction flat in Nala Sopara(Thane) on 26th May 2010(registration date), on which now the builder is asking for VAT and Service Tax. I had paid 1.85Lakh by 26th May 2010 and remaining 9.15Lakh needed to be paid by home loan source.

Please let me know that do I need to pay VAT and Service Tax, if yes, then what would be the amount or % of the same.

Thanks & Regards,
Manoj Singh
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Old May 30 2012, 06:16 PM   #2
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Yes, you have to pay the VAT & Service Tax as requested by the developer. This amoutn is to be deposited by developer with the govt. hence it's mandatory for all buyers to pay.

VAT is 1% of agreement value while service tax is 3.09% post-april 01, 2012.
Pre-April 01, 2012 service tax as 2.575%.
Note, ST and C+VAT is on agreement value and as mandated by govt. developer is not asking for something on his own

also, i heard now some thing called as "Labour Cess" too is being asked by developers as per govt directions.
Old June 6 2012, 06:49 AM   #3
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do we need to pay service tax in advance for the full property agreement value, or is it construction linked.?
Old June 6 2012, 10:36 AM   #4
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service tax one needs to pay as per the work completed..if work completed is 70% then service tax wud b on 70% n not 100%
Old July 18 2012, 01:39 AM   #5
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Dear Sir/Madam,

Ref : Service Tax
1) On the 07th Jun`2010, Booked an under construction flat for Rs. 26,23,374/- at the Casa Rio with Lodha developers, Dombivali Project. The builder was suppose to give us possession in 2012 end. However now he has sent a letter that he will give possession in Jan` 2014 . If the project time taken is more than 3 yrs by the builder, then do i have to pay service tax
2) How is service tax derived.
3) Do we take 33% of the Agreement Value to be taxable or is it 100% of the total agreement value taxable ?
4) what is the % of service tax applicable on under construction residential project
5) Does service tax % change on floor rise or on premium view or is it flat rate applicable by the govt of india.
6) Builder has not raised a service tax invoice, but has issued receipt only. Where do we complain
7) If the builder has issued the receipt and has not paid the service tax to the government, then does the buyer get in trouble. Is there a way to find out whether the builder has paid service tax.
8) Agreement Cost is Rs.26.23,374/- Can you please calculate the service tax applicable and enclose the working for the same.

Looking forward to hearing from you

Ajay Rath
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Old August 29 2012, 02:31 PM   #6
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Default Help

I have buy property at nalasopara in Jan,12 which is under construction,I was suppose to get possession in month of May,12 but now it will be in Oct,12,
If my agreement has done in jan,12 then the service tax which i need to pay will be what?(Is it as per before April,12 I.e. 2.75 or as per Post April,12 I.e. 3.09)
Old July 17 2013, 08:09 PM   #7
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i am intending to purchase new flat. its cost is 1490000/- i have paid 400000/- to builder . then cc came and now i am about to do the registration by paying all fees and dues.

how ever will i have to pay service tax ?
if yes then shall i pay this on whole 1490000/-
or only on 400000/- which i paid before completion certificate came.

also do i have to pay vat as well.

i haven't entered in to any sort of agreement with builder please help

please help me

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