VAT calculation

Q: I have purchased an apartment and builder is asking for 1.25% VAT on registration cost and 5% VAT on remaining, please let me know if this is right?

Mukesh Jain, Hyderabad

14th May 2015

Other in Giridhari Executive Park Phase I, Appa Junction, Hyderabad

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Replies (4)

Hi all, I have one query, please suggest or clarify What is the SC verdict on VAT? Do builders have to refund it?

Gautam G,

18th December 2015

Comment

The verdict of the supreme court is that the VAT is to be paid on the price applicable at the time of purchase of the flat. Currently it is 1% of the complete value of the flat. So there is no refund in question.

Raajan, Hyderabad

18th December 2015

Hi Mukesh even I purchased a flat in giridhari and builder is asking for VAT twice 1.25% and 5% respectively but I have a flat in chandanagr and I paid vat only once and I have the document as well.

Rajeev , Hyderabad

3rd August 2015

Comment

Hi Rajeev, I think you are right VAT is chargeable only once while purchasing the property, I would like to suggest you to go thorough discussion with your builder and find out the reason and also, you can consult a reputed lawyer to know about the legal aspects.

Vineet raj, Hyderabad

18th August 2015

Hi, There are various websites where you get information about stamp duties and registration charges. Moreover, as per my understanding Stamp duties and registration charges are state-level charges to levy revenue.

Manjunath Gupta, Hyderabad

18th May 2015

Comment

Hey Mukesh, As per my knowledge in Hyderabad 5% Stamp Duty, 1.5% Transfer Duty & 1% Registration Fee is applicable for residential project and I think builder demand for 5% stamp duty not VAT.

Siddharth Bharadwaj, Hyderabad

18th May 2015

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