I have purchased new flat in pune.
At time of agreement, builder not gave any information about service tax and VAT.

I did Agreement on 11 Octomber 2010.
As flat was ready so Bank has disbursed all amount of loan (22 lakh) dated 18/11/2010. at one time installment (Only one payment done by bank.)

According to me Bank is done full one time disbursement of loan only if Building is having completion certificate(ready possession flats).

So Now Builder is asking about service tax and VAT amount.

Can you please tell me whether in my cases service tax and VAT is applicable or not
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  • Hi, Can anyone please tell me do we need to pay VAT if building has completion certificate ?
    I have booked a flat in building having CC and builder is not charging VAT. When I asked him about the VAT then he told me that building has CC so VAT is now not applicable.
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  • Originally Posted by "Worldlife83
    Hi, Can anyone please tell me do we need to pay tax if building has completion certificate ?
    I have booked a flat in building having CC and builder is not charging VAT. When I asked him about the VAT then he told me that building has CC so VAT is now not applicable.

    Dear Worldlife83,
    VAT is not applicable in your case. :)
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  • Thanks Jitu_Sir for quick reply. I have taken a complete package where all the taxes will be paid by builder which are already included in total cost but he has not included VAT so I was worried that it should not be the case that builder will ask for VAT later. :)
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  • Originally Posted by Worldlife83
    Hi, Can anyone please tell me do we need to pay VAT if building has completion certificate ?
    I have booked a flat in building having CC and builder is not charging VAT. When I asked him about the VAT then he told me that building has CC so VAT is now not applicable.


    Hey, just want to confirm the fact that VAT is not applicable if your building has completion certificate. I registered the flat in Feb 2009 and we got a completion in 2011. So does that mean no VAT for me..
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  • Originally Posted by "akssenti


    Hey, just want to confirm the fact that VAT is not applicable if your building has completion certificate. I registered the flat in Feb 2009 and we got a completion in 2011. So does that mean no VAT for me..

    Dear akssenti,
    As there was no OC in Feb 2009, VAT is applicable in your case.
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  • So even if one is buying a resale flat, if no CC/OC is available, then VAT would be applicable? If so, that makes it more imperative to ensure that these docs are avl.
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  • Help Requested

    Dear Jitu Sir,

    I am writing in to request for some kind advise.

    I have purchased a flat in Mumbai directly from the builder. The agreement was registered in July 2012 and all payment including Bank Loan was done during July-August 2012.

    The building received the Full Occupation Certificate from BMC at the end of 2011. The CC and OC are attached to the agreement and any Tax is not mentioned anywhere in the agreement.

    Now the builder is refusing to give the possession letter unless S. Tax and VAT is paid, inspite of me telling him that it is not to be paid after OC, as read on online forums and articles.

    Is there any circular/Govt website/official report or judgement that I can produce in front of him to convince him that the amount is not payable.

    Sir, your kind help will be highly appreciated. Would be requesting for your earliest reply.
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  • Would really appreciate if someone can help me with my query above :)
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  • Originally Posted by "RErookie
    Would really appreciate if someone can help me with my query above :)

    Dear RErookie,
    Regrets for late reply.
    In your case since the building has received OC prior to Registration date, neither VAT nor ST is applicable. You can get the circular/GR from your tax consultant. You can send a letter along with copy of circulars to your builder.
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  • Dear Jitu Sir,

    Thanks a lot for your reply.

    I am a salaried person and do now have a tax consultant.

    Can you please suggest a good tax consultant in Mumbai with a reasonable fee, who would know about the particular Circulars/GR.

    Many Thanks.
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  • Originally Posted by RErookie
    Dear Jitu Sir,

    Thanks a lot for your reply.

    I am a salaried person and do now have a tax consultant.

    Can you please suggest a good tax consultant in Mumbai with a reasonable fee, who would know about the particular Circulars/GR.

    Many Thanks.

    Dear RErookie,
    I operate only in Pune. So unaware about Consultants in Mumbai. You can log in to Mumbai forum for the help. Hope you get the help at the earliest.
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  • Originally Posted by Jitu_Sir
    Dear RErookie,
    I operate only in Pune. So unaware about Consultants in Mumbai. You can log in to Mumbai forum for the help. Hope you get the help at the earliest.


    Thank you very much for your help sir. Will post in the Mumbai forum.
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  • Originally Posted by Jitu_Sir
    Dear RErookie,
    I operate only in Pune. So unaware about Consultants in Mumbai. You can log in to Mumbai forum for the help. Hope you get the help at the earliest.


    Jitu Sir You are doing a commendable job helping out people from all over.

    Thank you!!:bab (56):
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  • Originally Posted by "kingmanish


    Jitu Sir You are doing a commendable job helping out people from all over.

    Thank you!!:bab (56):

    Dear kingmanish,
    Thanks for your encouraging words.
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  • Dear Jitu Sir,
    I want to register the property (under construction flat in Pune) with my name + my wife's name.
    However, I'm the only earning member and want to take a loan only with my name.
    Is this possible? Or do I have to add my wife's name also when applying for a home loan?
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