Hi,
We have booked new flat in bangalore.

ll be doing agreement by giving 20% of property value.

My question builder mentioned
at the time of registration,
we have to pay gov registration amout some x rs and legal charges.
Along with that 7.5% tax on total flat value.


What is this 7.5% tax amount. Is it for builder or government only have to pay while registration.

Please any information.


Regards,
Soumya,
Bangalore.
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  • I think its 6% only and not 7.5%.
    From Departments of Stamp and registration:-
    KAIGR

    3
    Agreement relating to sale of immovable property





    (i) with possession
    5(e)(i)
    5%
    I-Note 7(a)
    1%

    (ii) without possession
    5(e)(ii)
    0.1% on market value equal to the amount of consideration Min.500, Max.20,000
    I-Note 7(b)
    Rs.20

    So at the time of agreement you need to pay .1% while at the time of possession you need to pay 6%.
    Thanks,
    Sandeep
    CommentQuote
  • Originally Posted by soumyakumta
    Hi,
    We have booked new flat in bangalore.

    ll be doing agreement by giving 20% of property value.

    My question builder mentioned
    at the time of registration,
    we have to pay gov registration amout some x rs and legal charges.
    Along with that 7.5% tax on total flat value.


    What is this 7.5% tax amount. Is it for builder or government only have to pay while registration.

    Please any information.


    Regards,
    Soumya,
    Bangalore.


    Dear soumyakumta,
    Ask builder, Why is he charging this 7.5% tax? He will explain you.

    It is (service tax + vat).

    There are lot of threads on this forum for the vat+service tax and you may refer them.


    Sumitra.
    CommentQuote
  • I also have a question -

    should the co-owner be present for the registration process? is it a must?

    What if the co-owner could not be available for the registration process?
    CommentQuote
  • Co-Owner should be present for the registration process, as the co-owner also needs to sign the sale deed along with owner and builder representative.
    CommentQuote