140,171+ Members
   Get Started   Latest Posts Search Today's Posts Mark Forums Read
IREF® Real Estate in India - Property Discussion
IREF® - Indian Real Estate Forum > Real Estate Open House > Indian Property Laws > VAT on under construction property
Reply
 
LinkBack Thread Tools Search this Thread
Old July 29 2012, 05:30 PM   #1
New Member
 
Join Date: Mar 2012
Posts: 3
Likes Received: 0
Likes Given: 0
Default 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

 
Old July 29 2012, 06:10 PM   #2
Veteran Member
 
planner's Avatar
 
Join Date: Feb 2012
Location: Middle East
Posts: 2,489
Likes Received: 1331
Likes Given: 871
Default

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



Mumbai is looking advance ........................Congratulations.
 
Old July 30 2012, 12:54 AM   #3
Senior Member
 
Join Date: May 2012
Location: Gurgaon
Posts: 618
Likes Received: 140
Likes Given: 200
My Mood: Fine
Default

3.09 %
All India.
And 12.6% on some items.
 
Old August 3 2012, 07:01 PM   #4
New Member
 
Join Date: Dec 2011
Posts: 18
Likes Received: 1
Likes Given: 0
Default

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.
 
Old August 12 2012, 01:45 PM   #5
New Member
 
Join Date: Apr 2012
Posts: 13
Likes Received: 1
Likes Given: 0
My Mood: Cool
Default

Quote:
Originally Posted by James G View Post
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: http://www.indianrealestateforum.com...0-a-35561.html
 
Old August 12 2012, 01:48 PM   #6
New Member
 
Join Date: Apr 2012
Posts: 13
Likes Received: 1
Likes Given: 0
My Mood: Cool
Default

Quote:
Originally Posted by jeetcp View Post
3.09 %
All India.
And 12.6% on some items.
That is service tax dear.
 
Old August 18 2012, 03:50 AM   #7
New Member
 
Join Date: Aug 2012
Posts: 9
Likes Received: 0
Likes Given: 0
Default

Quote:
Originally Posted by rajeshdutta View Post
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: http://www.indianrealestateforum.com...0-a-35561.html
thanks dear.. good info
 
Reply
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Join IREF Now!    
Related Threads
When to sell an under construction property?
Which one is better under construction property or ready to move (resale) property
Property construction
Need Help for Under-Construction property
Ready to Move Property vs Under Construction Property


Tags
construction, property, vat
"..", ".."India