Applicability and Calculation of ST and VAT on Purchase of a Villa

[SASI CHATLA]

Dear Sir/ Madam,

I have bought a Villa in the Year 2014 with a booking advance and later paid installments in Year 2015 and 2016 [ bank loan].

During possession, the builder has raised ST as 15% on 30% of AOS

VAT as 5% on 25% of AOS.

Please let me know whether ST is applicable for Villa and if so should it be applied on AOS ?

Should the land value be deducted from AOS and apply ST?

Also, ST if applied should be 14% for 2014 and 14.5 for 2015 and 15% for 2016 [since 1st June].

Please advise, how to pay or negotiate on this.

Thanks in advance.

Regards,

Sasi

AI Summary

Service Tax and VAT Applied to Villa Purchase with Installments (2014-2016); 70% Abatement Covers Land Value A user inquired about the applicability and calculation of Service Tax (ST) and Value Added Tax (VAT) on a villa purchased with installments paid between 2014 and 2016. The query focused on whether ST should be applied to the Agreement of Sale (AOS) and if the land value should be deducted. The user noted that ST rates changed over the years. A respondent confirmed that ST is applicable to villas under specific notifications, with a 70% abatement covering the land value, meaning no separate land value deduction is allowed.