Service Tax and VAT for under construction unit

Share
Share This Thread
  1. Sravan

    Sravan New Member

    I am purchasing an under construction villa in Hyderabad (AP), could you please clarify below questions please..:

    1. In the below article, it is listed that Service Tax would be exempted for construction of single residential unit that is designed for use of a single family, will I qualify for this exempt as I am going to use for my residence
    http://www.charteredclub.com/service-tax-on-under-construction-property-3-09/

    2. Service Tax: Currently Builder is creating a sale deed on land and registering it on my name, and then he is writing a development agreement and work order for the house construction. In this situation is the Service Tax(3.09%) applicable on Development and Work Order cost? or will it be applied on total of the below 3 items including plot cost?
    • Sale Deed Value(plot cost) - 7,50,000
    • Development Agreement - 15,00,000
    • Work Order - 26,25,000
    3.VAT: Builder is charging 1.25% as VAT in Andhra Pradesh, in the below article it is mentioned as 1%, which one is correct? will it be charged on top of service tax meaning VAT on (total cost of the villa + Service Tax) ?
    http://www.investmentyogi.com/current-service-tax-rate-sales-tax-rate-and-vat-rate/
     
  2. BHARATINK

    BHARATINK New Member

    Can someone please help whether I should pay VAT for under construction flat which is still not delivered to me as per promise. the builder has already obtained the CC & got the project approved by CIDCO. bna@selandia-group.com
     
Draft saved Draft deleted
Loading...