VAT norms for your new flat

Q: Hi, guys i heard there is a change in VAT norms and also the price!Kindly confirm the news.

Amitabh, Noida

2nd December 2013

Real estate News in Delhi

vat & service tax on new apartment

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Replies (6)

Hi, i have booked a flat that is under construction... will i have to pay VAT and when??

Yogita Bali, Noida

25th June 2014

Comment

Yes Yogita, the builder is liable to collect the service tax and vat for under construction property and so i guess at the time of final demand the builder will be charging this amount from you.. in a recent ruling by the court this is mandatory...

Vinay Sharma, Pune

25th June 2014

But how will it impact end-users? and will there be any cut down of demand? for that?? or it will stay the same?

Arun, Gurgaon

2nd December 2013

Comment

hmmm i fee that the buyers who were not charged VAT earlier, have to carefully observe the various tax clauses in the under-construction agreement. They have to ensure that the builder has inserted the right clauses in it to recover the pending tax dues.

Arvind, Gurgaon

2nd December 2013

This is good thinh because there were some builders who did not pay the VAT payments so far under the Special Leave Petition. Now after the news norms they are also expected to pay their outstanding tax amounts. I guess they have to pay the interest also.

Sarith, Noida

2nd December 2013

Comment

hmmmm but their ability to pay and the extent to which such payment might affect the industry’s working capital requirement remain to be seen.!!

Sashiti, Noida

2nd December 2013

So guys how much will it affect the builder??? and will it effect it in a wrong way?

Giri, Noida

2nd December 2013

Comment

Yes Giri they will be surely effected through this, i think now the builders have to pay VAT to the government . Not only that VAT from the buyers to whom they sell their under-construction flats, they will be charging more.

Jewel, Noida

2nd December 2013

Ok i think this might effect the real estate sector also.See it has been on the lower side for the last few quarters has further worsened with the court’s decision. It is important that the end-users have to evaluate the implications for transactions.

Daniel, Noida

2nd December 2013

Comment

Actually the VAT rules have got more strict now home buyers who failed to pay VAT while buying under-construction properties, will be charged heavily now. Also they may now have to bear the additional costs.

Bobby, Noida

2nd December 2013

Comment