Sir,
I had booked my flat in Nov. 2009, and paid the instalments as demanded by builder.
But at the time of last instalment on June 2011, he demanded service tax & Vat on agreement cost to get the possession.
So my query is whether ST & VAT payable, if yes then on what amount coz during booking of flat no ST & VAT applicable at that time.
He had not yet get the completion certifiacte.
Any way to escape that taxation.
Thanking U
Munaj Inamdar
Service Tax Applies to Payments for Flats Made After July 1, 2010; Earlier Payments Exempt. A forum user inquired about the applicability of service tax and VAT on a flat booked in November 2009, with the builder demanding these taxes upon the final installment in June 2011. Two responses clarified that service tax became applicable to builders from July 1, 2010. Payments made before this date are exempt, but those made after are subject to service tax, with an effective rate of approximately 2.5% due to a 75% deduction. The responses emphasized the tax's applicability to payments post-July 2010, including registration and stamp duty. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
