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No Service Tax on apartment purchase

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No Service Tax on apartment purchase

Last updated: July 20 2010
25 | Posts
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  • #11

    #11

    Re : No Service Tax on apartment purchase

    Originally posted by HemantDesh View Post
    With the 3.5% extra cost for underconstruction house. Buyer will now prefer to buy completed unit or resale.
    Ofcourse, there is also possibility that resale value will go up by 3.5 %. This can be good news for people who have already invested.
    Dear HemantDesh,
    A slight correction. The extra cost will be 2.5% since ST depends on stage of construction while VAT is applicable on ready possession flats as well.
    There are 2 aspects to look at this.
    1. Appreciation in the rate psft in comparison this extra cost.
    2. Choices left at ready possession stage.
    Jitendra Pethkar | Pethkar Projects

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    • #12

      #12

      Re : No Service Tax on apartment purchase

      Do we have separate set of GR's by Maharastra gov and Central gov??I am really confused on this? I have purchased the flat last July(2009) and will get the possession in next month. I have already cleared the entire amount in Feb 2010.So now what all I will have to pay to GOV?Please help...

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      • #13

        #13

        Re : No Service Tax on apartment purchase

        Originally posted by pune_home_search View Post
        Do we have separate set of GR's by Maharastra gov and Central gov??I am really confused on this? I have purchased the flat last July(2009) and will get the possession in next month. I have already cleared the entire amount in Feb 2010.So now what all I will have to pay to GOV?Please help...
        If you have already paid all the amount, you dont have to pay anything to Govt.

        BTW, how can you pay all amount without taking possession? Now, what is the motivation for builder to give your possession as early as possible ?

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        • #14

          #14

          Re : No Service Tax on apartment purchase

          Originally posted by Jitu_Sir View Post
          Dear HemantDesh,
          A slight correction. The extra cost will be 2.5% since ST depends on stage of construction while VAT is applicable on ready possession flats as well.
          There are 2 aspects to look at this.
          1. Appreciation in the rate psft in comparison this extra cost.
          2. Choices left at ready possession stage.
          Jitu sir, thanks for correction. But still 2.5% is big amount. I don't think we will get even this much appriciation in next 2-3 years in Pune.

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          • #15

            #15

            Re : No Service Tax on apartment purchase

            Originally posted by pune_home_search View Post
            Do we have separate set of GR's by Maharastra gov and Central gov??I am really confused on this? I have purchased the flat last July(2009) and will get the possession in next month. I have already cleared the entire amount in Feb 2010.So now what all I will have to pay to GOV?Please help...
            You don't have to pay a single paisa in addition to SD + reg to govt. So be rest assured, you are insulated from all the new taxes, ST (Central) & VAT (State).
            If you are happy, you are successful.

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            • #16

              #16

              Re : No Service Tax on apartment purchase

              Originally posted by HemantDesh View Post
              If you have already paid all the amount, you dont have to pay anything to Govt.

              BTW, how can you pay all amount without taking possession? Now, what is the motivation for builder to give your possession as early as possible ?
              thanks 4 ur reply... I cleared the amount because the flat was almost ready (90%). as disbursed the full amount I saved some of my home loan interest.. One builder asked for blank cheque to my friend against ST and VAT , he was also in similar condition like mine.. He also cleared all the amount and just he took the possession letter last month.Where can we read GR online?? Or please suggest how to tackle with builder if he ask for cheque?? Or we dont have any option...

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              • #17

                #17

                Re : No Service Tax on apartment purchase

                Hi realacres/Jitu_Sir,

                Just wanted to understand ST & VAT applicable to me. I've bought a flat and now will be making disbursement (80%-90%, since building is near to completion) to builder in month end.
                How do i calculate applicable ST & VAT tome?

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                • #18

                  #18

                  Re : No Service Tax on apartment purchase

                  Originally posted by abhi2509 View Post
                  Hi realacres/Jitu_Sir,

                  Just wanted to understand ST & VAT applicable to me. I've bought a flat and now will be making disbursement (80%-90%, since building is near to completion) to builder in month end.
                  How do i calculate applicable ST & VAT tome?
                  Dear abhi2509,
                  If you had registered your agreement prior to 1st April 2010 then VAT is not applicable and if registered after then you will have to pay 1% of agreement value.
                  All payments made after 1st July 2010 will attract 2.575% ST. So in your case disbursement value as well as any own contribution be charged ST extra. Certainly you ( not bank) will have to bear that tax component.
                  Jitendra Pethkar | Pethkar Projects

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                  • #19

                    #19

                    Re : No Service Tax on apartment purchase

                    Jitu_Sir,

                    Many thanks for the information.
                    Actually property is yet to be registered.

                    So ST & VAT will be applicable to me is VAT=1% of Agreement Value and ST=2.575% of Agreement Value, correct?

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                    • #20

                      #20

                      Re : No Service Tax on apartment purchase

                      Originally posted by abhi2509 View Post
                      Jitu_Sir,

                      Many thanks for the information.
                      Actually property is yet to be registered.

                      So ST & VAT will be applicable to me is VAT=1% of Agreement Value and ST=2.575% of Agreement Value, correct?
                      Dear abhi2509,
                      You are right. Just remember that if there are any charges taken other than agreement then they will be charged under 10.3% ST.
                      Jitendra Pethkar | Pethkar Projects

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