Hi i purchase a ready to occupy flat in hyderabad ,At the time of registration it was register for 33lakhs ,

Q: now builder is asking me to pay VAT and service tax extra ,..i need to VAT and service tax for ready to occupy flat,..?

avinash reddy,

10th August 2015

Property Tax in Kondapur, Hyderabad

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HELLO!!
If the occupancy certificate is issued to the building and you purchase the property after that, then you need not pay service tax on the flat. but if the Occupancy Certificate is not issued to the building then you have to pay Service Tax on the flat. As far as VAT is concerned it is to be paid by the dealer i.e. Developer/Builder and not by the customer. so builder cannot claim VAT separately from the buyers.

Shiva Kuchibhottlla, Hyderabad

12th August 2015

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I am going to buy a flat in hYDERABAD. It's a newly constructed ready to occupy flat. Apart from the basic price and registration price, the builder is asking me to pay around 73000rs as Service Tax and VAT. I need to know what it is for. Please someone reply.

Bharath Konda, Hyderabad

12th August 2015

Comment

@ Yadav,
There is no specific guidelines on who will pat the VAT and service tax. Buyers say that as per court ruling it has to be paid by the builder for under construction flat But the responsibility of builder is to deposit the VAT and Service Tax with govt. Payment of this tax depend upon what is being mentioned in the agreement between builder and the buyer.

Srikanth Reddy, Hyderabad

11th August 2015

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What to know about services tax and VAT?

Sumanth Yadav, Hyderabad

11th August 2015

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Hi , I think once should know various think in terms of VAT and service tax as follows:
1. Land cost is exempted from both VAT and Service Tax.
2. VAT and Service Tax is not applicable on Ready to Occupy flats.
3. VAT & Service tax should be specifically mentioned in the sale agreement and which party will bear this cost.
4. Service Tax is not applicable on single residential unit i.e. independent house, villa or bungalow.
5. Service Tax is not applicable for low cost housing with carpet area of upto 60 sq. mt. per house in the housing complex but subject to approval from concerned authorities.

Srikanth Reddy, Hyderabad

11th August 2015

Who will pay the VAT and Service Tax?

Sumanth Yadav, Hyderabad

11th August 2015

Hi Avinash, According to a recent verdict by the Supreme Court, the sale of a property that is under construction would be liable to value-added tax and services charges.In the case of ready-to-occupy flats, service tax is not payable as the construction is carried out by the builder/developer on his own account and later sold to an independent buyer. As sale of ready-to-occupy flat amounts to sale of immovable property, VAT is also not applicable on such transactions.

Madhu Karanth, Hyderabad

11th August 2015

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