tool tip arrow
Give us your feedback
×

We would like to take just 2 seconds of your time for your valuable feedback! It will help us to improve your experience.

How likely are you to recommend CommonFloor.com to your friends, colleagues or relatives?

Least Likely
1
2
3
4
5
6
7
8
9
10
Definitely

Submit
Cancel

Please select how likely you are to recommend CommonFloor.

Thanks!
×

We are glad to know that CommonFloor.com has helped you in your property search and other real estate needs!

Please do provide us more feedback at contactus@commonfloor.com so that we can improve and serve you better.

We appreciate your feedback on CommonFloor.com! We are working hard to improve ourselves and serve you better.

It will be great if you can send us detailed feedback about your experience at contactus@commonfloor.com

VAT & Service Tax on new Apartment in Bangalore

Q: Hello,
I purchased new flat (under construction flat) in Bangalore in June 2011.
Basic cost of my flat is 30Lakcs. And 1.5 Lacks for Car Parking. Total basic cost is 31.5 Lacks.
My Builder charged me 5% of VAT on 31.5 Lacks (Basic Cost of Flat + Car Parking Amount).
My Builder also charged me 2.7% of Service Tax on 31.5 Lacks (Basic Cost of Flat + Car Parking Amount).
Do I need pay both VAT and Service Tax to my builder?
Do I need to pay VAT? If yes, as per Govt. norms how VAT I need to pay to my builder?
As per Govt. norms how much Service Tax I need to pay to my builder?
Please advise.

Thanks,
Venkat.

Reply

Replies (6)
1
hi vrmaram,
Same with me. Builder has imposed
Service Tax (4.12%) - Rs 1,18,161
VAT (4 %) Rs. 1,10,720
BWSSB + KPTCL Charges 1,00,000 /-.
Car Parking. 1,00,000
Cost of the flat 2,66,8000

Does the construction cost includes Registration charges usually ?

Many thanks for one who throw light on this.


When you buy by flat you buy two things from the builder 1. Undivided Land of Share and 2. The flat Both VAT(4% or 5%) and Service Tax(10%) on 33% of the construction cost need to be paid on no 2 and not on no 1. Make sure you get a TAX invoice for those if builder is not giving you the TAX invoice then dont give those amount.
Biswajit Acharjee , Apartment Resident 
25th March 2012


sorry Service Tax is 10.3% on 25% of the construction cost
Biswajit Acharjee , Apartment Resident 
25th March 2012


As on Jan 2013 ...Service Tax @ 12.36% on 25% of BASIC Price ( if Land Cost is included ) otherwise 12.36% on 33% of Basic Sale price ....rest of the things as KTPCL+BWSSB + AMMENITIES are chnarged at 12.36% ....BUT Parking could not be chnarged for service tax as , as per SC decision Parking slot is not an extra service but the part of construction itself
21st January 2013


2
Any Answer for this?? please reply at profatt@gmail.com. I am also in same trap.


3
I heard that 5% of VAT was as per BBMP, but Service Tax should be much lower than 2.7%.


4
Can any please light on Owners quota? For a Land Owner quota flat do i have to give VAT and Service Tax?? Will it be taken care by the Land Owner??


same question I too have. For land owner quota flat do I have to pay VAT & TAX?
2nd September 2013


5
VAT and service tax is only paid for under construction apartment. Service Tax is 3.09% of Total Cost(means 12.36% of 25% of total cost) and VAT is 5.5% of total cost = 8.59% of total cost.


6
Service Tax is Calculated 12.3% of the 40% Portion of the Total Cost ex: Basic Cost = 30,00,000/- and other Charges is Say = 5,00,000/- so now 40% of 35,00,000/- is 14,00,000/- know apply 12.3% Service Tax on this Amount and for Vat it is 5% on Total Value , i,e = 35,00,000/- .
The Best way to Calculate Service Tax & Vat is 9.5% of Total Cost Rather Getting Confused Yourself.


7

Ask a Question
120 Characters Left