Applicability and Calculation of ST and VAT on Purchase of a Villa, Service Tax

[SASI CHATLA]

Dear Sir/ Madam,

I have bought a Villa in the Year 2014 with a booking advance and later paid installments in Year 2015 and 2016 [ bank loan].

During possession, the builder has raised ST as 15% on 30% of AOS

VAT as 5% on 25% of AOS.

Please let me know whether ST is applicable for Villa and if so should it be applied on AOS ?

Should the land value be deducted from AOS and apply ST?

Also, ST if applied should be 14% for 2014 and 14.5 for 2015 and 15% for 2016 [since 1st June].

Please advise, how to pay or negotiate on this.

Thanks in advance.

Regards,

Sasi

Posts / Replies

[KASTURI SETHI]

Yes. ST is applicable on Villa. This is covered under Notification No.26/12-ST dated 20.6.12 as amended vide Notification No.8/16-ST dated 1.3.16 (Serial No.12 refers). 70 % abatement (earlier 75%) is in lieu of value of land. So no deduction of value of land is permitted separately.