Real Estate — Service Tax & VAt on Under construction Flat
Rarakesh_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.
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