Service Tax & VAT for under construction flat in Bangalore

POSTED BY Sashikanta Behera ON June 27, 2013 10:55 am COMMENTS (2)

Hi All,


I wanted to understand on how service tax is being charged on under construction flat

The builder of the property we have identified is charging VAT @ 5.5% on the (Basic Cost+Parking+KPTCL+BWSSB+Amenities) and

Service Tax   = SUM(Basic Cost+Parking+KPTCL+BWSSB+Amenities *33%)*12.36%

Is the builder charging me right regarding Service Tax and VAT?


Property in Bangalore




2 replies on this article “Service Tax & VAT for under construction flat in Bangalore”

  1. Sashikanta Behera says:

    Thanks a lot for the Reply.

    I will not surrender the property, but if i get any some information about the service Tax and VAT, i can ask the builder to reduce some amount.

    KPTCL = Electricity Board
    BWSSB = Water supply

    Do you have any document or any evidence as How VAT and service Tax will be calculated in a under construction flat?
    Do i have to pay the service Tax and VAT of whole property (Basic Cost+Parking+Electricity +Water line +Amenities)


  2. Dear Sashikanta, if I say, builder is not charging you fair, ‘ll you surrender the property? VAT & Service Tax should be charge on the basic cost of the flat. I’m unable to undersatnd, what is KPTCL & BWSSB is here.



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