Real Estate Forum on Vat On Property

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.

Latest Answer: If a builder chooses the first option then he would have to pay Rs 4 crore for a project of Rs 100 crore. The amount of the project would be calculated on the basis of turnover of the builder from selling flats or houses.

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.

Latest Answer: Thing to remember while you are buying property:- 1) VAT and Service Tax are not applicable on ready-to-move-in properties. For instance, if you have bought a property when it is almost ready-for possession, you must consider to postpone your sale agreement to be signed after completion certificate is issued. If you do so, then you will be saved from paying these charges. 2)Builder has to issue 2 separate payment receipts i.e. one each for VAT (with Tax Invoice no and TIN) and Service Tax (with Tax Invoice No and ST registration no). 3) Service Tax is not applicable on single residential unit i.e. independent house, villa or bungalow. 4) Service Tax is not applicable for low cost housing with carpet area of up to 60 sq-mt.