Stamp and VAT charges for under construction property in Telangana

Q: Hi, What is the stamp and VAT charges for under construction property in Hyderabad? where should we pay this amount?
Builder is asking this amount before the registration and he will be paying on behalf of me? I need to validate based on your inputs.

Can anyone share the details ASAP.

shravankumarv15, Apartment Resident

21st February 2016

Property Tax in Hyderabad

property registration charges in telegana

stamp duty in telengana

registration charges in telangana

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Replies (4)

Do we need to pay Service Tax if we buy the property from the Land Owner and not from the builder?.

krishna,

10th May 2016

Comment

Hi Shravan,

According to the current rates by the Telangana govt, stamp duty is set at 4%, transfer duty at 1.5% and registration fee at 0.5%. Stamp duty and TD are payable on MV or consideration whichever is higher.

Manali Shah,

29th February 2016

Comment

Hi Shravan,
Stamp Duty charges for under construction property in Telangana is 4%, transfer Duty is 1.5% and Registration fee will be 0.5%. Yo can get more on this site plz. click the link http://registration.telangana.gov.in/readyreckoner.jsp

Kailesh, Bangalore

22nd February 2016

Comment

Hi Kumar,
Service Tax and VAT is applicable to all under-construction property transactions. But their actual value varies with states in which the property is being constructed. Service Tax is levied by the Central Government on the construction services offered by the developers to buyers. Presently, Service Tax is 14%. Service tax is applied only on the construction component. To simplify this, the government levies service tax on 25% of the cost of the flat. This effectively brings the service tax rate to 3.5%. When a buyer purchases a property, he/she might be asked by the seller to pay service tax and VAT.

Bharath Konda, Hyderabad

22nd February 2016

Comment

Bharath is right. But remember, for apartments with carpet area of more than 2000 sq-ft or for property valued Rs 1 crore or above, service tax is levied on 30% of the cost of the property. This takes the service tax to 4.2% for such properties.

Secondly, service tax is payable only on property purchase directly from developers and is not required in case of resale property purchase as there is no service provided.

James, Bangalore

22nd February 2016