LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

shankar (self)     18 December 2011

Vat and st on residential flats - bangalore

Hi All,

I entered into a Tri Party Agreement(Bank, Builder and Buyer) and bought an Under Construction Flat, Now i am asking for registration of Flat and Builder is charging me Extra VAT and ST as 4 and 2.5 % respectively, There wasnt any Construction agreement but we had ONLY sale agreement and according to the sale agreement i need not pay any VAT and ST(Cost Sheet/Booking Sheet doesnt say about this, but now he is charging me, So

Agreement Date - Jan 2010
Actual Flat Possession Date - Dec 2010
Current Status - Not Giving Possession still

1.How can i find if the Real Estate company is registered for taking VAT taxes from Buyers?
2. The receipts which they had issued me earlier didnt had VAT number on that. and on request to they dont Provide me the VAT number, But asks me to pay VAT amount before registring the FLAT.
3.This VAT amount was NOT mentioned in my Sale Agreement ealier.
4. What is this ST(Service Tax ) and on what it should be applied? I didnt had any construction Agreement done, i had only Sale Agrrement, but still am i liable to pay VAT and ST?


Property is in Bangalore



Learning

 3 Replies

asendilvel (Consultant)     20 December 2011

Sir

For your understanding sake

what is the total cost of flat

have u paid any advance as off now or not

registration is either at the time of possession or at the time of payment of full amount

insist on vat number incase you have any doubt and can clarify it with commercial tax office

well ST is charged by the central govt on all builders , wherein the builder take the services of subcontractors for construction purpose for example

a flat is built, materials need to be purchased for construction for which vat is subjected

he uses labour to build the flat for which he needs to pay their wages is subjected to ST

it is calculated on a prorata basis, as total cost of apartment construction earlier it was 75 % towards vat & 25% on st 

and now the govt has relaxed it as 60 % vs 40 % 

hope this clarifies you 

asendilvel (Consultant)     20 December 2011

1.How can i find if the Real Estate company is registered for taking VAT taxes from Buyers?

ITS MANDATORY GOVT RULING, AND ITS HEADACHE OF BUILDER PAYING GOVT AND YOUR INTEREST IS NOWAY HARMED


2. The receipts which they had issued me earlier didnt had VAT number on that. and on request to they dont Provide me the VAT number, But asks me to pay VAT amount before registring the FLAT.

ITS A MUTUAL UNDERSTANDING ONTHE SUM YOU HAVE PAID VAT IS SUBJECT TO 


3.This VAT amount was NOT mentioned in my Sale Agreement ealier.

VAT AMOUNT WILL NOT BE MENTIONED ON SALE AGREEMENT NO 


4. What is this ST(Service Tax ) and on what it should be applied? I didnt had any construction Agreement done, i had only Sale Agrrement, but still am i liable to pay VAT and ST?

YES REPLIED IN EARLIER EMAIL

Aditya Singhal (Manager)     29 December 2011

I have a similar question. Do we really have to pay VAT because i bought a property in Uttaranchal and i did not had to VAT. I paid only the service tax @2.575% on the basic sale price and Car Parking..

 

I am now buying an apartment in Bangalore near Sarjapur and they are charging me ST @ 4.5% and VAT @ 5 %.

Can you please tell me if these are the right numbers ???


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register