Rate of VAT & service tax on Flat purchase in Borivali, Mumbai

Q: The total agreement value will be Rs.10000000/- approx. Builder has got CC but not OC. Now I would like to know what Rate of VAT and Service Tax is applicale and on which amount. I came to that since the builder got CC no VAT or Service Tax is payable. PL enlighten me the actual position of these inditrect taxes.........

For your information area of flat is 780 sq.ft Carpet and 873.6 is Built-up...

Mahesh Desai,

27th August 2015

Property Tax in Borivali East, Mumbai

occupancy certificate

service tax & vat on constructed property

service tax & vat on under construction property

commencement certificate

no brokers please

rate of vat & service tax

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Replies (1)

Hello Sir,
Service Tax and VAT are paid only for under construction properties. And Land cost is exempted from both these charges.

A property is termed "under construction" till the builder receives a "completion certificate" from the relevant authorities. If the entire amount for the property purchase is paid after the receipt of a completion certificate, there would be no service tax levied on the purchase of the property.

Abhinandsavalla, Mumbai

1st September 2015

Comment

Right Abhi,
For all under construction properties below Rs 1 crore or below 2000 sq-ft. area, the service tax applicable is 14% of 25% of the total agreement value. But for under construction properties that exceed or equal to Rs 1 crore or are over 2000 sq-ft. area, the service tax applicable is 14% of the 30% of the total agreement value as per effective, 1st June,2015.

Ravindra Singh,

1st September 2015

Hello Sir,
I think this article will guide you in proper manner. Plz. click the link for mor information on Service Tax & VAT Service Tax & VAT on under construction property

Sanjana Jain, Mumbai

1st September 2015