what is the total percentage for registration and stamp duty in Punjab? Please help

JAMES CHAWANG,

22nd July 2016

Property Tax in Mohali

stamp duty in mohali

registration charges in mohali

property tax in mohali

service tax in mohali

vat in mohali

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Mohali Property Tax Property Tax in Mohali

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Yes, and don't forget that For apartments with carpet area of more than 2000 sq ft or for property valued ₹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. However, service tax is levied on the entire amount on other cost items such as Preferred Location Charges (PLC), Floor Rise Charges (FRC), initial maintenance charges and club-house etc. In all these cases service tax is standard – 14.5%.

Harmeet Kaur,

22nd July 2016

Comment

@James,
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.

The present rate of stampduty is 5 % of the value of the property. The present rate of registration fee is 2 % of the value of the property in Mohali.

Balwinder Singh,

22nd July 2016

And for VAT:- VAT is levied on the sale of goods (movable properties). For any sale to attract VAT, it should involve transfer of goods from one person to another. In case of under-construction properties, it is the transfer of ownership rights from the developer to buyer in the form of a sale agreement, in select states.

VAT is charged at the rate of 1% of the ‘agreement value’ in Mumbai and Pune and 5% in Bangalore, but there is no VAT levied for apartments purchased in Noida-NCR, Chennai, and Kolkata.

Harmeet Kaur,

22nd July 2016

Hi,'Are you buying a under construction property or ready-to-move flats? If it is a under construction property then you have to pay VAT because VAT is applicable for the under construction property. If that property would have been constructed then there was no need to pay VAT. It is not applicable to the constructed property so that’s the advantage of buying a ready-to-move or developed property. And this could be cost you around 15% including Service Tax-14.5% and 0.5% as Krishi Kalyan Cess and 0.5% as Swachh Bharat Cess.

Harmeet Kaur,

22nd July 2016

Comment

Here is a simple rule to calculate Service Tax on under construction property. calculation of service tax is a bit complicated due to its applicability to various cost heads. The basic cost of the property you pay includes the cost of land and construction. 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%.

Balwinder Singh,

22nd July 2016