Rohith Rao
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DO I need to ay VAT if I registered a new flat for less than 50 Lakhs ?
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

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