VAT and service tax for purchasing under construction apartment ?

POSTED BY srevathi ON February 28, 2014 10:14 am COMMENTS (2)

I am planning to buy a apartment in chennai . The builder’s cost break up is as below :

1. Land + Construction cost – INR 3201900

2. EB – 45000, WATER – 25000, drainage – 50,000

3. LEGAL – 25000

TOTAL COST – INR 33,46,900,

How is calculate vat and service tax?

2 replies on this article “VAT and service tax for purchasing under construction apartment ?”

  1. sureshvarma says:


    i recently purchased an under construction appartment flat with 1110sqft area
    for which land value is 41000
    cost of construction is 1221000

    for which i paid service tax by cash to builder 69000
    he is telling that 5.6% s. tax on total construction value

    till now he is charging 3.5% to others who registered by june
    but after june he is charging 5.6%
    is it correct or not?

    why this much confusion to every builder they are also not having any data

  2. ashalanshu says:

    Dear Srevathi, VAT and service tax ‘ll be applied as a %age on your cost. the service tax is 3.09% of your cost other than land.



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