Hi Sachin , If the society is going to be a co-op housing society then LBT is applicable on the conveyance by the builder in favour of the society@ 1% on the prevailing market value of each flat. Each flat holder is liable to pay LBT at this rate at the time of execution and registration of conveyance deed. The market value of the flat at the time of execution and registration of agreement shall be the basis of LBT calculation. This LBT is to be paid in the form of a Stamp Duty. RegardsHi Sachin , If the society is going to be a co-op housing society then LBT is applicable on the conveyance by the builder in favour of the society@ 1% on the prevailing market value of each flat. Each flat holder is liable to pay LBT at this rate at the time of execution and registration of conveyance deed. The market value of the flat at the time of execution and registration of agreement shall be the basis of LBT calculation. This LBT is to be paid in the form of a Stamp Duty. Regards

We are the advisors to commonfloor.com on such property related matters and will therefore be happy to help you too. For us to be able to provide the correct response, we will need to go through your sale agreement with the builder. Could you kindly scan and email that to us.We are the advisors to commonfloor.com on such property related matters and will therefore be happy to help you too. For us to be able to provide the correct response, we will need to go through your sale agreement with the builder. Could you kindly scan and email that to us.

Section 3 of “Karnataka Ownership Act, 1972 (Act No.17 of 1973) deals with the definitions. Sub section (f) of the said section defines and contains the list of “Common areas and facilities”. Again Clause (3) of sub- section (f) of Section 3 of the said Act includes – The basements, Cellars, Yards, Gardens, Parking areas and Storage facilities as “Common areas and facilities”. According to this definition car parking is included in the common area and builder/ developer should not charge separately for car parking. However the aforesaid sub-section (f) while defining “Common areas and facilities” states that “Unless otherwise provided in the declaration or lawful amendments thereto”. Builders / Developers take advantage of this stipulation and while entering into the sale agreement and drafting of the final sale deed make the purchaser agree to pay separately for the car parking and they escape the implication of the judgment referred to in the question. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.Section 3 of “Karnataka Ownership Act, 1972 (Act No.17 of 1973) deals with the definitions. Sub section (f) of the said section defines and contains the list of “Common areas and facilities”. Again Clause (3) of sub- section (f) of Section 3 of the said Act includes – The basements, Cellars, Yards, Gardens, Parking areas and Storage facilities as “Common areas and facilities”. According to this definition car parking is included in the common area and builder/ developer should not charge separately for car parking. However the aforesaid sub-section (f) while defining “Common areas and facilities” states that “Unless otherwise provided in the declaration or lawful amendments thereto”. Builders / Developers take advantage of this stipulation and while entering into the sale agreement and drafting of the final sale deed make the purchaser agree to pay separately for the car parking and they escape the implication of the judgment referred to in the question. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.

As a matter of fact there is no document or record or for that matter term known as “B-Khata” in Karnataka Municipal Corporation Act, 1976 (Act No.14 of 1977). Fact is that any land, which has not been converted for “Residential or Commercial use” by “Land Revenue Department” of the respective state, is known as “Revenue land”. Due to rapid and unplanned urbanization in the city of Bangalore hordes of Revenue land were sold, purchased and used for residential/commercial purposes. Legally Municipal Corporation of Bangalore could not collect property tax against such lands. To overcome this legal hurdle and at the same time with an intention to not to loose the substantial revenue, they devised a way under which they started recording such receipts in a “B- Register”. This gradually came to be known as “B-Khata”. A land classified as “Agricultural / Revenue land” must be converted to land for residential / commercial use by the Deputy Commissioner of the Land Revenue department to be entitled to get the civic amenities such as water, sanitary and sewerage connections. Even home loans cannot be sanctioned for purchase/construction of residential home constructed on agricultural land till it is properly converted. Only alternative is to get such land converted and get the “Khata” allotted by the BBMP. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.As a matter of fact there is no document or record or for that matter term known as “B-Khata” in Karnataka Municipal Corporation Act, 1976 (Act No.14 of 1977). Fact is that any land, which has not been converted for “Residential or Commercial use” by “Land Revenue Department” of the respective state, is known as “Revenue land”. Due to rapid and unplanned urbanization in the city of Bangalore hordes of Revenue land were sold, purchased and used for residential/commercial purposes. Legally Municipal Corporation of Bangalore could not collect property tax against such lands. To overcome this legal hurdle and at the same time with an intention to not to loose the substantial revenue, they devised a way under which they started recording such receipts in a “B- Register”. This gradually came to be known as “B-Khata”. A land classified as “Agricultural / Revenue land” must be converted to land for residential / commercial use by the Deputy Commissioner of the Land Revenue department to be entitled to get the civic amenities such as water, sanitary and sewerage connections. Even home loans cannot be sanctioned for purchase/construction of residential home constructed on agricultural land till it is properly converted. Only alternative is to get such land converted and get the “Khata” allotted by the BBMP. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.

VAT is payable by the builder/ Developer @5% of the cost of construction only. It does not include the cost of land or payment to sub-contractors or service charges. The Supreme Court has directed that VAT is not payable if a fully constructed flat is sold to the flat purchaser as it would not amount to a works contract. As a common practice builders insist upon property buyers to pay the VAT that also on the total value of the house rather than just the construction cost, when the obligation to pay VAT is theirs only. In the instant case when the VAT has already been paid by the previous owner, no subsequent payment of VAT is required because it is payable once only. Any demand to pay VAT again in such cases is unjust and unreasonable. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.VAT is payable by the builder/ Developer @5% of the cost of construction only. It does not include the cost of land or payment to sub-contractors or service charges. The Supreme Court has directed that VAT is not payable if a fully constructed flat is sold to the flat purchaser as it would not amount to a works contract. As a common practice builders insist upon property buyers to pay the VAT that also on the total value of the house rather than just the construction cost, when the obligation to pay VAT is theirs only. In the instant case when the VAT has already been paid by the previous owner, no subsequent payment of VAT is required because it is payable once only. Any demand to pay VAT again in such cases is unjust and unreasonable. We are the legal advisors on real estate for Commonfloor.com and will be happy to provide you with the answer below. If you still have any questions/clarifications then kindly email us or call us and we will respond to you. It will be a paid service though.