Whether the Service tax and VAT are applicable to the customer or the developer?
Question asked by Mr Rahul Saraswat from US:
I booked a flat 18 months back. The flat is now ready for possession; I need to do registration of the flat. Can you please suggest whether the Service tax and VAT are applicable to me? Do i need to pay service tax to the builder? There are 56 flats in this complex.
Mr. Rahul Saraswat, USA
Mr. Rahul Saraswat, USA
Vatsala Answers:
In majority of cases, service tax and VAT will be applicable. It does not depend only on the number of flats but on whether the builder has outsourced the construction activity or not. Vatsala
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