I have booked a flat in Bangalore.

Q: Here are the cost break up.Total cost (Including Car parking): 4050000Car Parking charge: 150000down payment: 800000loan: 3000000balance amount: 255000Proposed date of Possession:April 2013Sale/Construction agreement executed on: Nov 2011Location: BangaloreNow builder ask me to go for registration.builder aggree for registration of flat on govt rate. as per now total flat cost is 2500000.but told me i have to pay VAT(5%) and service tax (3.1%) total 8.1% of sale value 4050000. is it correct on not?or total VAT and service tax (8.1%) should be of registration amount. so i am confused..and what will be registration amount for as per govt rate.please give me this information........D K sharma

d k, Bangalore

23rd March 2013

Property Tax in Bangalore

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When you buy by flat you buy two things from the builder

1. Undivided Land of Share and

2. The flat.

Both VAT and Service Tax (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 ) 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.....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.

Rakesh, Bangalore

25th March 2013

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As per my knowledge, the stamp duty is 5.6% nad registration charges is one percent on the market value or the consideration shown in the document- whichever is higher. It is applicable for bbmp limits property.

Kunal,

25th March 2013

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