Q:I bought a flat in Hyderabad telangana for which all payments have been completed before June 30th 2017. However i waited for registration to be done in July post GST thinking that VAT which is to be paid pre-GST will get subsumed in post GST period. However my builder is still insisting on paying up VAT? Can anyone please confirm if there is a need to pay VAT now ?
Latest Answer: No, you do not have to pay VAT for your flat. You have to Pay only Stamp Duty - 4.5%, Registration Charges - 1.50% and transfer Fee - 0.50%.
Your builder has to pay VAT and later apply for the Input Credit and later he will pass it on to us.
Q:i have booked flat in March 16 with 20 % booking amount, now builder has received OC, he is asking for rest payment in 15 days, otherwise he will charge interest,, is this right?? secondly do i need to pay service tax and VAT,, as builder received OC and sales agreement not yet to signed but it is their mentioned in allotment letter.
Latest Answer: And remember, Since VAT is a state subject, various states have their own laws for levying VAT. To overcome the difficulty in ascertaining the exact cost of materials in the agreement amount, states like Maharashtra provide for the payment of VAT on the entire value of the agreement, under a ‘composition scheme’. In Maharashtra, the rate of VAT under this composition scheme, is 1% of the total agreement value.
Latest Answer: It will be a great move if such happens. Also stamp duty is not proposed to be incorporated under GST and will thus continue to remain as it is at present. So, decreased cost of construction will take place once a lower bracket of GST is applied as the developers will be liable to pay much less than today, thus allowing cost of units to fall which will directly benefit the end users.
Latest Answer: Why should the common man bear the burden of this illogical decision? For developers, this decision could not have come at a worse time. There is no sale at all. They are facing a huge liquidity crunch and rise in taxes means rise in property prices. Ultimately, the common people will have to cancel their buying decisions.
Q:I have bought a new flat in Hyderabad, Telangana. At time of registration I have paid 3.08 % service tax and 1.25% VAT. After that at every installment i release I am paying 5% of VAT and 3.08% service tax. Is this correct ? I somehow feel builder is collecting more VAT.. Please do anyone have any idea about VAT to be paid after every installment release?
Latest Answer: Hi,
I registered my flat in Pune in 2010.The contract or agreement price was once around 30lakh.Complete construct up area is around 950 sq feet. I admire to understand how so much VAT should I need to pay as per the Govt rule.
Q:Dear Sirs,Suppose I sell a residential flat in 2013 for Rs 1.62 cr approx. (going market rate) which was purchased in 1985 - 1986 for Rs 2.55 lacs:1) What is the VAT / Service tax / TDS tax / any other tax me / buyer will have to bear / pay (if any)? It seems some new rule is come into effect from June 01, 2013 regarding service tax. I request clarification.2) What is the long term capital gain tax I have to pay on sale of the flat?Likewise, if I invest the proceeds of sale in part or full in purchase of residential flat (new / resale) what will be my tax outgo (VAT / Service tax / TDS tax etc)Thanks,Shivakumar R Sharmaemail:shivakumar_sharma@yahoo.co.in
Latest Answer: i all,
To give buyers relief, the government has allowed income tax deductions if the property is bought on a loan. Under Section 80C, the borrower can claim deduction of up to Rs 1.5 lakh. For a self-occupied property, a Rs 2 lakh benefit is available under Section 24 (b) of the Income Tax Act for interest on the home loan. If the property is not self-occupied, the entire interest paid to the lender can be deducted from income.
Q:I have booked a flat in Bangalore. Now the builder is asking me to pay the VAT and Service taxes. I heard VAT is 5% and Service tax is approx 2.5%. I would like to know how the VAT and Service taxes are calculated
Q:What is the status of VAT which we paid for buying a flat in bangalore? will it comeback to me ? is it confirmed? i have heard a case going on in the court
Latest Answer: Builders as well as flat buyers are confused over the payment of VAT charges on selling and buying property. According to the law, Value Added Tax (VAT) is applicable on mobile things. Things which are immovable are not counted under VAT.
Latest Answer: Cant they make a uniform for all like 1% on agreement value.
After 2010 all have accepted 1% VAT so from 2006 to 2010 also can be made as 1%.
