Service Tax on Property incl./excl. of VAT?

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  1. Amigo

    Amigo New Member

    I have bought a 1400 sqft apartment in Bangalore and the cost is as shown below:

    1. Undivided share of land
    Rs 17,28,000
    2. Cost of Construction
    Rs 32,67,000
    3. KEB/BWSSB Deposit
    Rs 2,00,000
    4. Car Parking
    Rs 2,00,000
    5. Vat (@5%)
    Rs 1,80,000
    PROJECT COST (TOTAL) Rs 55,75,000 (Sum of the above 1 to 5)

    The registration of the flat is expected to happen in late January 2014 and the builder has given the service tax calculation as shown below:

    Service Tax = Rs 55,75,000 * 3.09% = Rs 1,72,267

    I have the following 2 questions:

    1. Can I know if the above calculation is correct? Do we calculate the service tax on the Land Share Cost/VAT/KEB&BWSSB Deposit/Car Parking etc as well?

    2. When are we expected to pay the service tax. Is it during the time of registration or during the time of handover?

    Can somebody please assist?

  2. Sahil Oberoi

    Sahil Oberoi Member

    1. He has computed Service Tax on the VAT Portion as well. I dont think Service Tax would be levied on the VAT Portion.
    2. Service Tax would be required to be paid at the time of Registration.
  3. Sumit Agarwal

    Sumit Agarwal Active Member

    Yes correct Sahil Service tax should be calculated on total of ( 1+2+4) Deposit also does not cover any service portion.
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