POSTED BY October 2, 2012 4:22 pm COMMENTS (3)ON
Could someone please help me out with the query below?
I bought a flat from a Builder earlier this year. The flat was booked on 12-Dec-2011 with a booking deposit of 1,00,000. The construction / sale agreements were signed on 15-Feb-2012 by providng the down payment amount of 7,00,000, thus completing a down payment of Rs. 8,00,000. When providing the construction agreement, the builder mentioned to give the flat to us in 40 lacks, all inclusive (including registration). The construction agreement also states the value of the flat being 40,00,000 including taxes.
However, I got a notice from the builder before a few days demanding to pay up service tax. As this wasn’t mentioned at the time of agreement, it came as a rude shock. Since I wasn’t told about this earlier, I am trying to check if this is just another way for the builder to extract money or am I really liable to pay this extra amount despite the agreement stating amount including taxes.
Also, he is asking to pay the tax on entire amount excluding VAT & Registration at 12.36%. Am I liable to pay it at the rate of 12.36% or at the rate of 10.3%? Are there any other exemptions that I might get?
Thank you in advance for your help.
Thanks & Regards,