Whether VAT is to be paid to Arihant on Anaya building please let us know?

Q: Bank guarantee given to Arihant against VAT on Flat in Anaya. What is the status of VAT applicable YES/NO?

Mohan, Apartment Resident

31st October 2011

Buying property in Mumbai

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For property deals made before April 1 2010, the old method of computation at five per cent would be followed, subject to the Bombay High Court stay on collection being lifted. VAT becomes liable on the sale of construction material used in the construction of flats. Please take any legal help who will guide you better on this matter.

Suresh Khanna, Mumbai

2nd November 2011

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In my case Sale agreement was made in July/Aug 2009. Is it applicable????

Mohan, Apartment Resident

1st November 2011

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HI Mohan,
Value added tax (VAT) on property sale agreements has been done mandatory on all properties in later half of 2010 across Mumbai and other cities across the country by the Union budget of 2010-11. Property buyers have to pay 1% of VAT on the price of the flat mentioned in the agreement of sale registered after April 1 2010. You also have to pay a 5 per cent stamp duty, 2.38 per cent service tax and 1 per cent local self-government tax in certain districts in addition to VAT. Now a buyer has to pay 8.38 per cent in Mumbai and 9.38 per cent in other cities.

Suresh Khanna, Mumbai

31st October 2011

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