Q:I'm the land owner we have entered into JD with a builder. Currently the project is in final stages of completion. We have sold only one unit for now, builder has sold 90% of his Units. Below are my Questions
Do I need to collect VAT from customers, if yes how much?(Builder says we landowners are not required to collect VAT from customers) need clarity on this.
Also what are the other service taxes that we have to collect from customers.
Please advice.
Regards,
Soma Shekar Reddy
Bangalore
Latest Answer: Hello Soma, First you have to check the agreement which was made between you and the builder. Because the VAT collection depends on the agreement made.
Q:*I have finalized a 3BHK flat in Purnima classic which is JV between land owner and the developer in Basapura near Hosa road junction near Concorde Midway city, which is New but its 1 year old flat with built up area of 1719Sft. The apartment society had not been formed yet.*Builder quoting 3k/sft(negotiable). Which makes it RS.51,57,000 basic cost for just the flat. *But he is charging additional 2 lakhs for parking, *Deposits 2,57,850(Rs150XSFT), *VAT & TAX @8%(Basic cost+Car parking +deposits=4,49,188), *Registration(1500rs X AREA+ Car Parking X 6.6%=1,78,035)*So the Total cost of the flat is coming up to Rs.63,03,115. which is 11,46,115 extra from basic cost of the flat.Can any one plz advice me on this additional costs and taxes are legitimate? And what are the things I should point out while negotiating with the builder? What are the Usual additional costs and taxes apart from the basic price of the Flat? Any advice is highly appreciated. Thank you.
Q:I recently bought a flat in Banashankari, Bangalore for 65 Lakhs. I have registered it for 40 Lakhs. Now the builder is asking for 4.9% VAT. I spoke with a lawyer and he said VAT applies only if the cost exceeds 50 Lakhs and he said he is 200% confident about it. So do I need to pay tax ? Why did the builder ask me VAT? does anybody can confirm me that VAT applies only if costs is greater than 50 Lakhs ?
Latest Answer: VAT and TDS is two different things. The buyer of a flat priced Rs 50 lakh and above will have to deduct 1% of the amount. VAT is another tax where builder has to pay for every transaction and he might push the burden of the same to buyer. I would like to correct you TDS is applicable only when cost is greater than Rs 50 L
Q:Hi,I have booked an apartment in Electronic city, Bangalore. The flat is under construction and will be available for possession during feb 2013. The builder has given us the cost break up which has Rs.2,62,000.00 as service tax and VAT on the property which cost Rs.32Lakhs (basic cost + car parking). Kindly clarify me, what is the calculation for service tax and vat? Also pls clarify me what is the need for two separate agreement, say sale agreement and construction agreement? Now my builder is telling me that he will be giving me only one agreement. Kindly advice me on this.your clarification will be much helpful for me.Kindly help me.ThanksRona
Q:Hello,I purchased new flat (under construction flat) in Bangalore in June 2011. Basic cost of my flat is 30Lakcs. And 1.5 Lacks for Car Parking. Total basic cost is 31.5 Lacks.My Builder charged me 5% of VAT on 31.5 Lacks (Basic Cost of Flat + Car Parking Amount). My Builder also charged me 2.7% of Service Tax on 31.5 Lacks (Basic Cost of Flat + Car Parking Amount).Do I need pay both VAT and Service Tax to my builder?Do I need to pay VAT? If yes, as per Govt. norms how VAT I need to pay to my builder?As per Govt. norms how much Service Tax I need to pay to my builder?Please advise.Thanks,Venkat.
Latest Answer: I am buying flat but bit confused after seeing your data. Here is the details what my builder charging for me:
Total sqft: 1253 and p/qft cost: 3000: 1253*3000 = 3759000
Club house: 218500
Car Parking: 300000
Service Tax 15%: 268000
Vat: 153000
BESCOM: 238000
Yearly maintenance: 43000
Legal charges: 35000
Please let me know if anything is wrong here.
