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How is VAT calculated for under construction property in Bangalore ?

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How is VAT calculated for under construction property in Bangalore ?

Last updated: January 7 2018
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  • How is VAT calculated for under construction property in Bangalore ?

    I would like to understand how VAT and service tax is calculated for flats in bangalore. If anyone knows, please share the information.
  • #2

    #2

    Re : How is VAT calculated for under construction property in Bangalore ?

    Hi Fellow Members,

    I am new to this community and this is my first post too seek the knowledge and wisdom of our community.

    I am looking to buy a house as an investment and have finalised on a project. I have attached a screenshot of my Excel sheet calculation of the breakup as given by the builder. My queries are in regards to the picture attached please refer it for more details. My queries are listed below please feel free to answer any of them as per your area of expertise but its a humble request please also attach your source of information so that i can refer to it. Lets make this a great thread useful for all other Property buyers
    1. What is the the rate of VAT and Service Tax applicable on an under construction property in Bangalore ?
    2. How is the final amount of VAT and Service tax derived or on which amounts are these % values calculated ?
    3. What are considered as the other charges in case of an under construction property apart from land cost and construction cost i have read and considered the following as Other charges
      Floor rise extra (FRC)
      Car Parking (CP)
      Club House (CH)
    4. i have read there is a service tax on construction and then there is a different Service Tax rate on other charges which i have mentioned in point 3, somebody clearing this confusion would be a great help
    If i go back to the builder saying he is charing more then i need to go with substantial proof that is some government guideline. can someone point me the right direction where i can read these guidelines. A link would be highly appriciated

    Thanks guys looking forward to learning from and getting my queries answered

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    • #3

      #3

      Re : How is VAT calculated for under construction property in Bangalore ?

      Hi experts,

      Can you pls advice on the Service Tax and VAT on under construction property before implementation of GST on the below components.
      • Land
      • Construction
      • Car Parking
      • Club House
      • BWSSB/KEB Charges
      • STP/Generator Charges
      • Advocate
      • Maintenance Charges
      Last edited January 7 2018, 02:18 PM.

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