Taxation in Indore

Q: What is the service tax that I have to pay for buying a flat in Indore? Is there VAT charges also?

Aditya Jogi, Indore

2nd May 2014

Property Tax in Indore

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buying property in indore

service tax in indore

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Yes, if you’re buying a flat in Indore you don’t have to pay the service tax anymore.
The VAT is only applicable for transaction of under-construction property. If the builder has given the construction contract to some other building company, then VAT will come up on the construction costs.
The entry of any construction related material into Madhya Pradesh will be chargeable for VAT under the Madhya Pradesh VAT Act.

Rashika Mahajan, Indore

26th May 2014

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Actually, the service tax on property transactions in Indore has been cancelled since end of last year. This is applicable for both builders and buyers. So you don’t have to worry about paying the service tax at the time of buying a flat.
If you are buying an under construction property, then you have to pay VAT on the construction charges at the time of registering your property. Nonpayment of the VAT may attract a penalty amount higher than the VAT charge itself.

Faizan Khan, Indore

2nd May 2014

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