Real Estate — Service Tax & VAt on Under construction Flat

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 rakesh_rthakur on Mar 10, 2011
Dear @ MCHI,

This is Rakesh Thakur, I am residing in Kalyan and booked a flat in Tawripada, Near Filter Plant, Kalyan.
My Apartment has been completed but yet to receive the Completion certificate from the Local Authority.

Few days back I have recd a letter from My Builder stating that the Service Tax and VAT is now applicable on purchase of Under construction flats and need to deposit the same asap. As per him the High Court had instructed all the Builders to collect the 2.575 % Service Tax and 1% VAT from the end user (buyer) and deposit the same to them. The payment is scheduled to High court every month on 21st so he is insisting to deposit the same before this 21st otherwise penalty would be levied on the total taxes.

As per my knowledge the Stay put by HC is still not been lifted, I proposed him that I will give an indemnity bond so that you will be out from this responsibility, but he says no to it.

I request you to please confirm is really the 2.575 % Service tax and the 1% VAT is to be paid on the property taken by me as possession on flat would be dependent on that.

Please revert.
Complaint comments  1 Comment     Updated: Share0Tweet0Share0


Please let us know the current status of high court hearing on service tax & VAT for under construction property ?
As i made the sales of agreement on Aug 2010 and I will get the possession in May 2011.Now my builder is asking & charging service tax on under construction buildings.
Can we know that service tax stayed by high court on construction of buildings is liftet or still is there & ask them not to charge service tax…

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