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Service Tax & VAT on Under Construction Property

Varun Mohan

Dear All Experts,

Please suggest on Service Tax & VAT liability on under construction flat on group housing

At present, builder is charging VAT on below components

POWER BACKUP AMOUNT

CLUB MEMBERSHIP AMOUNT

CAR PARKING(OPEN) AMOUNT

EEC/FFC AMOUNT

EDC AMOUNT

LAND COST (%) AMOUNT

Service tax applicable on EDC amount or not

Thanks/Varun

Service tax on EDC: question whether development charges for an under construction flat attract service tax. Whether VAT and service tax apply to consideration components for an under construction flat, where the builder charges VAT on power backup, club membership, open car parking, EEC/FFC, EDC and a land cost percentage, and whether service tax is specifically applicable to the EDC amount. (AI Summary)
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