Tax & vat on new home
Dheeraj kumar
(Querist) 09 October 2013
This query is : Resolved
Hi Sir/madam
I am going to purchase a flat (1100 sqft) costing around 28 lakh.
for which I am paying 13 lakhs by cheque/DD and 15 lakhs through loan , now i would like to know whether i have to pay TDS & VAT on entire 28 lakhs or only 13 lakhs which i am going to pay in the form of chwque/DD.
C. SANJEEVA RAO
(Expert) 10 October 2013
You have not mentioned the place which you belongs to, however, the TDS is not required to be paid, but, the VAT has to be paid at the prevalent rate i.e. @ 1.25% on the market value of the flat at the time of registration of the flat (if you belongs to Andhra Pradesh). TDS under VAT provisions is required to be paid by the Builder/contractor/Developer in the cases of execution of works contract. Not by the prospective purchaser or buyer of the flat.
Raj Kumar Makkad
(Expert) 10 October 2013
C.. Sanjiva Rao has property advised you.
