IsVAT or Service tax applicable on independent villa construction
I am from Hyderabad from the state of Telangana.
I have purchased a land from a builder in muncipality approved layout and registered in my name. Made an independent villa construction agreement with the same builder and the construction permission is taken in my name from gram-panchayat. He is constructing a group of houses with the same procedure along with amenities. I have made 96% of the house cost by April 2017 through bank loan disbursement. Kept the remaining amount for amenities as the work is still going on.
During my last payment he mentioned that I need to pay service tax. But he gave me a balance sheet with VAT which is 5% of total agreement value.
I would like to know if there is any need to pay any sort of tax in this scenario. I am going for an independent villa with total cost less than 50 Lakhs including land cost. Is tax not exempted in my case ?
If at all there is VAT is the calculation correct ?
If I pay the amount, can I expect a voucher/receipt in my name, that I paid tax to the government ?
Thanks for your help