Resale Flat Taxes to be paid

Hi Rajat,
There are certain fixed costs such as stamp duty, registration, property tax, service tax, etc., that is known to most of the home buyers. There are other costs that may vary from each project such as parking, club house, floor rise, extra power back-up charges, maintenance charges, TDS, property tax, transfer charges, if you buying through broker then brokerage fee, if you have talen loan for buying your flat then loan processing fees, home insurance, moving costs, utility connection charges and if the flat is unfurnished then the cost of furnishing etc.

It is always safe you pay these charges himself. Otherwise, you can pay it via agents but check the necessary details and receipt. Thanks....

Thank you Rajat, Anuj and Ravi.

As I mentioned, I am planning to purchase resale flat. My understanding is that for a resale flat VAT and service charge will not be applicable. Now the question that I have are:

1. For property tax payments, I will ask owner to provide certificate from society that the property tax is duly paid. Any other thing I need to check?
2. Transfer charges will by default include club house, parking, power back up charges. Is this understanding correct?
3. I was told by the agent that I will have to pay TDS for the seller and the amount will be reduced from the final amount that I will pay to the owner. Is this correct and first of all I did not understand why this TDS?
4. Who will bear the Utility transfer charges? Me or the seller?

Thanks - Vipul

One more question I have is on registration. I am planning to put self,, wife and child in registration. Is it a good idea to put child name also or there will be any complications now or later?

Thanks, Vipul

Hi Vipul,
These taxes are applicable only once during the lifetime of the property (i.e. first sale to the buyer at the underconstruction stage) and not applicable on subsequent sale after construction. I don't think you need to pay any ST or VAT at this resale stage.