VAT on under construction property - Indian Real Estate Forum

James G · 29-07-12

I have booked a under construction flat in central suburbs in Mumbai and registered the agreement. The builder has now demanded that 5% VAT is payable on agreement value or market value, whichever is higher on agreements registered between 20th June 2006 and 31st March, 2010.

Can any one throw some light and authenticate whether this is really payable.

what about agreements registered subsequent to 1st April 2010, is VAT chargeable.

Regards James G

planner · 29-07-12

Tough question man.
We are not aware this in NCR.

Mumbai is looking advance ........................Congratulations.

jeetcp · 30-07-12

3.09 %
All India.
And 12.6% on some items.

himanshu8899 · 03-08-12

I have also booked a unit in Noida and I am paying 3.090% on BSP and 12.60% on all other charges such as parking, IFMS, Electricity etc.

rajeshdutta · 12-08-12

Quote:

Originally Posted by James G

I have booked a under construction flat in central suburbs in Mumbai and registered the agreement. The builder has now demanded that 5% VAT is payable on agreement value or market value, whichever is higher on agreements registered between 20th June 2006 and 31st March, 2010.

Can any one throw some light and authenticate whether this is really payable.

what about agreements registered subsequent to 1st April 2010, is VAT chargeable.

Regards James G

Hi James,

VAT is payable 1% on the value stamp duty is paid for registration of the property. This is correct for Mumbai and for properties registered after 1st April 2010. Earlier, VAT was proposed 5% against which Mumbai High Court had ordered a stay. Not sure, what the status of the case is now. Check with the sales people and obtain a copy of the high court order.

Also see this: Mvat for flats registered before April 2010

rajeshdutta · 12-08-12

Quote:

Originally Posted by jeetcp

3.09 %
All India.
And 12.6% on some items.

That is service tax dear.

ronaldsay · 18-08-12

Quote:

Originally Posted by rajeshdutta

Hi James,

VAT is payable 1% on the value stamp duty is paid for registration of the property. This is correct for Mumbai and for properties registered after 1st April 2010. Earlier, VAT was proposed 5% against which Mumbai High Court had ordered a stay. Not sure, what the status of the case is now. Check with the sales people and obtain a copy of the high court order.

Also see this: Mvat for flats registered before April 2010

thanks dear.. good info

29-07-12	#1
James G New Member Join Date: Mar 2012 Posts: 3 Likes Received: 0 Likes Given: 0	VAT on under construction property I have booked a under construction flat in central suburbs in Mumbai and registered the agreement. The builder has now demanded that 5% VAT is payable on agreement value or market value, whichever is higher on agreements registered between 20th June 2006 and 31st March, 2010. Can any one throw some light and authenticate whether this is really payable. what about agreements registered subsequent to 1st April 2010, is VAT chargeable. Regards James G

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29-07-12	#2
planner Veteran Member Join Date: Feb 2012 Location: Middle East Posts: 1,482 Likes Received: 734 Likes Given: 737	Tough question man. We are not aware this in NCR. Mumbai is looking advance ........................Congratulations.

30-07-12	#3
jeetcp Senior Member Join Date: May 2012 Location: Gurgaon Posts: 617 Likes Received: 140 Likes Given: 200 My Mood:	3.09 % All India. And 12.6% on some items.

03-08-12	#4
himanshu8899 New Member Join Date: Dec 2011 Posts: 18 Likes Received: 1 Likes Given: 0	I have also booked a unit in Noida and I am paying 3.090% on BSP and 12.60% on all other charges such as parking, IFMS, Electricity etc.