• Mar
  • 26
  • 2010

1% Vat on property sale in Maharashtra from April 1, 2010

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Maharashtra Government imposed 1% Vat on property sale from April 1, 2010 in its Budget for 2010-11

The Maharashtra Government has decided to levy one per cent Value-Added Tax on property sale from April 1, 2010 in its Budget for 2010-11. All sale agreements registered on or after April 1 will attract one per cent on the contract price of flats mentioned in the agreement of sale.

For deals closed before April 1, the old method of computation at five per cent would be followed, subject to the Bombay High Court stay on collection being lifted, according to a Sales Tax officer.

The officer pointed out, this time round, the State had brought in an amendment to VAT in the Assembly and hence there could be no further dispute on the matter.

With the court stay in force, builders were depositing the VAT component in an escrow account pending the outcome of the case. Some of them were even accepting post-dated cheques and indemnity bonds for the amount from buyers.

The Maharashtra Finance Minister, Mr Sunil Tatkare, said, while announcing the State Budget on Thursday, the levy was in accordance to the Supreme Court judgment which said “VAT becomes leviable on the sale of construction material used in the construction of flats,”

Mr Pranay Vakil, Chairman, Knight Frank India, said the decision though prospective, ended an issue that was unclear till now.


85 Responses to “1% Vat on property sale in Maharashtra from April 1, 2010”

  1. Abhay K. Hulwan says:

    I have purchased 2BHK Flat at Dombivli on 16/03/2010 and the Agreement for Sale has been made on 06/05/2010 and subsequently registered on 07/05/2010. I had obtained possession of my Flat on 31/07/2011. The Builder had demanded me 1% value of Sale Agreement on 13/10/2012 and requested to pay on or before 31/10/2012 to avoid interest or penalty. In the context of various and vague announcements by the Govt. of Maharashtra from time to time on VAT to be paid by Builder as well as the Flat Purchaser(who are layman to understand the legal aspect), let me have your correct legal opinion as to what percentage I have pay VAT on my Flat and interest or penalty thereon if I want to pay the same as on date. I will be highly obliged if you advice me in the matter. Thanks & Regards.
    Abhay Hulwan, Dombivli.

  2. Vasant M.Harwande says:

    Dear Sir

    Į have purchasd flat in Badlapur in 2011 and registration iš complete in Aug 2011.Now flat is ready for possessions & the builder iš Demanding Vat & Service Tax. He did not inform me about the earlier.

    Can Į know the exact solution in this case, if I applicable to pay the service tax & Vat or not ? Because the service tax is applied in July 2012.

    kindly guide me.your response iš highly appreciated.

    Regards
    Vasant M.Harwande

  3. Sandeep says:

    Dear sir,

    Į have purchasd flat in dombivli in feb2011and registration iš complete in may 2011.
    Now the builder iš asking about Rs.33000(Aš per builder Vat iš about 7000 and remaining iš interest on this amount.

    He did not inform me about this earlier.

    Can Į know the exact amount of Vat iš or Can Į pay vat directly to government?

    Also please clarify that. this interest on vat iš aš per rule or it iš for builder.

    Kindly guide me.your response iš highly appreciated.

    Sandeep.

  4. Sandeep says:

    Dear sir,

    Į have purchasd flat in dombivli in feb2011and agreement done in may 2011.
    Now the builder iš asking about Rs.33000(Aš per builder Vat iš about 7000 and remaining iš interest on this amount.

    He did not inform me about this earlier.

    Can Į know the exact amount of Vat iš or Can Į pay vat directly to government?

    Also please clarify that. this interest on vat iš aš per rule or it iš for builder.

    Kindly guide me.your response iš highly appreciate.

    Sandeep.

  5. Vinay says:

    I have purchased semi detached bunglow in Nagpur, which was registered ( sales agreement )in yr 2007 that time it was under construction, i couldnt made 100% Payment, now for pocession builder is asking to pay 5% VAT plus penalty amount Rs.2Lacs.also i would like to understand Registration was done in 2007, builder is again asking for registration charges & giving explanation that property charges is increased..Please suggest whether it is justified also confirm any other charges is required to pay.

  6. Mithilesh Dubey says:

    I hav purchased flat in kalyan in jun2011 & agreement in may2012. Now during possesion builder is asking for vat 2.35%. Is it really required & if required then tell exact percentage of vat % service tax by maharashtra govt.

  7. bhadange says:

    bhadange sachin
    Dear sir
    i have purches new home with Rs .5.68 L. now bulder demand 4 per. vat+service tax.pl conform me .what is acctual percentege of vat &service tax

  8. Gaurav Misra says:

    Hi,

    I have purchased a flat in Thane in 2010 (registered on 25th Feb 2010) from first owner (not from builder). At the time of purhcase the flat was fully constructed and ready to move in, and building was ready. Now the builder has sent a letter asking me to pay VAT of 1% on the original agreement amount (ie agreement value on which first owner had registered the flat under). He claims he has already paid VAT and now wants me to pay him the amount. Its clear that he will not go behind the first owner to claim the amount but will target whoever is the current owner. Am I liable to pay the VAT amount as I am second buyer of this property which was already constructed when I purchased it?

  9. suhas gaikwad says:

    hi,
    i have booking new flat at rural area in pune dated on march 2011,so will you tail me how much percentage vat,service tax and stamp duties paid to builder.

  10. Sanju says:

    Hi,
    Dear Sir,
    I have purchased a flat in 2008 in mulund east- mumbaiand I am staying (ocupancy) since 2008 …. but as of today builder has not completed the registration pocedure…. and now he is asking for vat amount of 1.15 lacks and the same he is demanding from all the flat members …
    He is not ready to give us the registration & OC details. Pls help us how can we cope up with such type of situation ….

    Your prompt response would be greatley appreciated.

    Thanks.

  11. ashish kayare says:

    I had purchased flat in Aurangabad maharashtra in June 2008 & now I received a latter from builder for service tax on 8th oct 2012 ,amount in not mention in latter,While I purchased flat construction was almost completed only finishing work was pending ,that time builder has not mention about this charge or any dispute between builder and state government regarding this VAT( service tax) even though as per aggrement and it was not mention in agreement.

    I took a loan from bank and amount has been given in 2-3 installment.

    What should i do in such case pls suggest

  12. Nischal Ratnaparkhi says:

    Hi,
    I booked flat in Kalyan (W) and regestration on 11/82009. now builder sent me letter to pay 5% MVAT.as per agreement.
    Do i need to pay MVAT. & also plz. clarify me that how can govt. demands 5% vat from 2006 upto march 2010 & 1 % from april 2010 any specific reason behind this. can I submit the janhit yachica on this issue.

    Thanks,

  13. Ramanath says:

    I have purchased flat from 1st buyer (not from builder) on 11.09.2009.
    kindly advise can pay VAT? then who?

  14. Ramanath says:

    I have purchased flat from 1st buyer (not from builder) on 11.09.2009.
    kindly advise. thanks

  15. Navanath says:

    i have register flat at 17 narch 2010 but possesion not yet what amount vi pay

  16. Rabin says:

    Dear Sir
    I made an agreement to sale on 19th March 2011 and took the possession in next month.

    1. What would be the MVAT tax % to be paid to builder?
    2. If the builder has already received the amount from me, how would be its receipt? Like a government receipt or receipt from builder?
    3. Can you give a detailed calculation  on how to calculate MVAT on registered amount? Any deductions allowed? So as I come to know that the builder has not fooled me.

    As a layman, unable to understand the agreement and many receipts attached with it !!!!!

    Kind request to guide.

  17. Dev says:

    There is one news in Sakal paper on page number 4 dated 11 August 2012 about Property Taxes.I have booked the flat  in under construction site in Pune (in Gram Panchayat Area). Govt Registration date is 04/08/2011 and I am getting possession in December-2012. In agreement it is written that service Tax and VAT will be charged as and when applicable by government.Now My query is:
    1)is service Tax is applicable? if yes how much?
    2)is VAT applicable? if yes how much?
    3)who should pay these charges? builder or flat buyer
    4)if buyer has to pay then can we directly pay this taxes?

  18. purnendu says:

    I had book a flat in Thane on 2009 & sale deed registration also made during 2009. Now Builder is asking for 5% of agreement value as VAT, also I am paying 2.47% as Service Tax.
    Can you guide me whether 5% VAT is really need to pay??

    Regards,

  19. Minin says:

    I have made agreement for purchase of flat in Aug.2011. Agreed price is Rs.7,00,000. Whether I need to pay VAT separately to Builder?. What is current rate of VAT. My flat is not ready and no final agreement is made. Kindly guide me.

  20. shyam says:

    Sir, I have purchased a flat in Pune. I want to know when the payment of VAT has to be done to the builder? My possesion is planned in Nov 2012. Builder is demanding the VAT. But I want to do the payment just before the possesion. Is it Ok to delay the payment?

    Pl confirm asap.

  21. sanjay k choudhary says:

    I have purchased a flat and registration was done on 10th march 2010. Builder is asking for 5% vat before possession. i heard that high court stay order is in force for collection of the money. has the high court verdict has come . Pls advise me urgently.

  22. Satish Aspat says:

    We have purchased a flat in March 2010. Possession of the flat is in the month June 2012. Please tell me at what rate I have to pay the VAT.

    Thanks.

  23. V.G.Dandekar says:

    TO WHOM IT MAY CONCERNED.

    I have booked the flat at Vashi. The builder has asked for VAT @1% on basic value of my property. However, I have paid the same immediately on receipt of their letter but they refused to give the receipt of the same.

    I want to know why builder cannot give the receipt? or is there any specific reason?

    Thanks,

  24. anant says:

    There should not be vat and service tax on property ,if applied there should be income tax benefit for the purchaser.

  25. Holkar says:

    Deas Sir,
    I am purchse home on 07/04/2010 of agreement value is 185000, Builder is asking for to pay service tax 58900 with penlty & 1 % Vax of 18900 amount.
    So, please let me know how much amount i have to pay to builder as a service tax & VAT. If possible then sent me GR copy.

    Thanks & regards, Holkar N.S.

  26. Niwrati says:

    Deas Sir,
    I am purchse home on 07/04/2010 of agreement value is 185000, Builder is asking for to pay service tax 58900 with penlty & 1 % Vax of 18900 amount.
    So, please let me know how much amount i have to pay to builder as a service tax & VAT. If possible then sent me GR copy.

    Thanks & regards, Holkar N.S.

  27. RAMESH Yadav says:

    Hi i have purchased under construction flat in jan 2009 reg in April 2009 .I have paid service tax @ 2.575 % .is MVAT is applicable now ? what % ???? i will likly get possesion in May 2012 .

    Thx

  28. C N Iyer says:

    When it comes to tax one is not supposed to question. Remit tax and be more patriotic and set example to others. Don’t be confused at all in this matter, after all builders are lerying this for your benefit only.

  29. rajiv thakur says:

    I have purchased a flat on 25.06.2009,and was supposed to get possession in April 2011.. now while taking the possession of the flat builder is asking for vat (60 k)…what are my options.as i don’t have the money

  30. Pundalik Kulkarni says:

    Hi Sir,

    I have paid VAT 1% to builder, As our was redevelopment Building but i have purchase 17 Carpet Extra , Builder gave us the possession on 31.07.2011 Our agrement Registration done on 31.10.2009 , Whether for VAT we are applicable or not . Also in agreement it was not mentioned regarding TAX

  31. jacob john says:

    I have done my flat registeration on june 2010 the first cheque payed to the builder on 12/june/2010.

    Can builder charge me vat & sc. If i registered on june 2010????? help please reply…

  32. Justin Isaac says:

    Hi Sir,
    I have purchased a flat on 25.07.2010, now while taking the possesion of the flat builder is asking for 1% vat & 2% service tax. what is the procedure to pay, is it to the builder or the Maharashtra government. If any orders are there kindly attach the same. The builder is refusing to give any thing in writing. Neither he is agreeing to open a fixed deposit between the two. Neither he is giving any receipt, If taxes are levied and has to be paid why not directly to the government. I am so worried and Mentally disturbed Please help me and comment.

    Justin

  33. charudatta says:

    I have register my flat at 06 Feb 2010. Should I give vat or not .What is latest rule for vat for my date of registration. Pl inform Early.My bulider is demading for vat.

  34. nabeel says:

    My M Vat Refund Application Pending For The Period 01/04/09 To 31/03/10 how to soul this problem ????????????

  35. nabeel says:

    My Refund Application For the Period 01/04/09 To 31/03/10 Pending How to soul this problem

  36. Nitin says:

    Some one purchase a flat after 31.3.2010 & the construction completed and completion certificate also taken before 31.3.2010 in that case vat is applicable or not to purchaser?

  37. William Sequeora says:

    I learnt that you don’t get a reply for the querries raised here ! What is the point in writing ?

  38. William Sequeora says:

    I had purchased a flat by an agreement for sale during june,2011. Now the builder is demanding 5% VAT and 2.75% service tax before giving delivery. He is refusing to give in writing and he says he won’t pay the tax to the Govt. now. He is only keeping the tax deposit with him, to give to Govt. as and when they demand. He is not giving a receipt either. Is the builder right in his demand ? Can I get a redresal of my grievences from any where ?

  39. shivaji kawle says:

    Respected Sir/Madam,

    I would like to ask you, If My sale agreement has been done before 1st April 2010, is there any liability of vat/service tax towards my side? & on how much %agreement value should i pay vat/service tax amount to the builder. & how much % vat/service tax need to pay. I have booked a falt in Thane in Jan2009, still the building is under construction, as per builder the possession will be made in June’2012, I have applied home loan & disbursed 4lac by bank to the builder, evethogh the property has been booked before 2010, builder asks for VAT.. I’m so worried.pls help.

  40. Naguji Khemnar says:

    Hi,
    I have done flat registration on 21-Jun-2010 and first payment cheque given to Builder on 3-Jul-2010, Builder has charged Service Tax due to cheque given in July.

    Can builder charge Service Tax if Registration has done in Jun-2010??? Please reply.

  41. sandip kadam says:

    I have purchased flat in 2011 and registration done on July 2011. The agreement value shown Rs. 22 lakhs. I paid to builder Rs. 22000.00 in cash for VAT. The receipt for the same not given to me. The VAT amount not shown in agreement.
    Can I get receipt for the same.

    Thanks & regard

    please advice me as early as possiable

  42. Sandy says:

    You can give undertaking that if it is applicable u will pay it that’s all.No need to give PDC

  43. sunil kumar says:

    sir

    I want to known section and act about vat.
    Because builders are taking 1% vat on property.

  44. CA Santosh Amte says:

    before 1 april 2010 vat on construction contracts as per bombay sales tax act is 5% & not 1 %

    Regards

    CA Santosh Amte

  45. prashant bhogle says:

    i have purchased flat on Augst. 2008 in Mumbai. builder has taken 5% vat amount from us whether vat is applicable or not.

  46. How much MVAT is applicable on flats purchased & registered before 1st April 2010 ? Is it 1% or 5%

  47. I would like to ask you, If My sale agreement has been done before 1st April 2010, is there any liability of vat/service tax towards my side? & on how much %agreement value should i pay vat/service tax amount to the builder. & how much % vat/service tax need to pay. reply me at the earliest.

  48. Birendra says:

    Hi, i’ve done flat agreement in sep 2010. now builder is asking for service tax and vat request you to give some clearty on it. regards, birendra

  49. Pushkar says:

    What are the various taxes applicable for a Builder business (partnership)?

  50. daxesh barot says:

    pl clear if my registration was done in APril’2010, in this case how much vat amount i have to pay

    reply

  51. Balram says:

    R Sir,
    I had registered my flat after 01 April 2010. Can I liable to pay 1% VAT. of the cost of the flat. Builder insist me to pay the VAT amount earlier. does the court finalised the verdict which was pending in High Court.

    Early reply is requested please.

    thanks Balram

  52. ANIL says:

    Hi, If maharashtra govt applied tax on purchase of property they should add that tax 1% at the time of registration only and that will be applied from APRIL2011,
    I know everybuilder taking benifit and intentionally harash to buyer ,
    Also there should be rule to give possetion after full payment those who earlier registered property.
    Thx. to Hon,ble minister Mr.Tatkare sir

  53. Abbas Syed says:

    it’s been a year and there is still a stay on the Service Tax and VAT on new properties. My builder is not giving me the possession and is insisting on me paying Service Tax and VAT. He never told me at the time of puchase that there will be this extra cost. 1 week before possession he wants the money for Service Tax and VAT.

    Please can you tell me what has to be done?

  54. pravin B SHINDE says:

    Dear Sir,

    I would like to ask you, If My sale agreement has been done AFTER 1st April 2010, is there any liability of vat towards my side?i.e should i pay vat amount to the builder or not? Pl. reply me at the earliest.

    Thanking you.

    Regards,

    PRAVIN SHINDE

  55. Kishor Dhakate says:

    Hi All,

    I have registered a flat on Dec 2009 in Pune, now in Jan 2011 is the time for possession and builder is demanding for 4 % of VAT on Property Value. They are demanding PDC cheque without mention date. Otherwise builder will not provide possession to me. I don’t know “What is a reality?” Could you please guide me to my problem? What can be the solutions?

    Thank you in advance.

  56. Shailesh says:

    i Have bought a flat in mumbai and the builder has sent me a letter for the dues to be paid at the time of the possession of the flat. as my registration was done in 2009 i am asked to keep an FD with a bank of my choice with a lein to the builder for the % MVAT. it seems the builders have lobbyed against the 5% MVAt and are negotiating to reduce it to 1%. the buiders office says that whenever the decision is made they will call upon for the payment of the money and for now they want to see a suerty by way of FD to be kept. has anyone done something in the similar way kindly advise. thanks

  57. Pradeep Nandi says:

    Hi All,
    I have register a flat on Nov 2009, now Jan 2011 is the time for possession and builder is demanding for Service Tax 2.5% and 1% of VAT on Property Value. He is demanding PDC cheque without mention date. Otherwise builder will not provide possession to me. I don’t know “What is a reality?”. Please guide me to my problem. What can be the solutions?
    Thank you in advance.

  58. kapil says:

    Hi,
    I booked flat in Casa Bella Lodha and regestration on Nov2009. now builder sent me letter to pay 5% MVAT.
    Do i neet to pay MVAT.

  59. kapil says:

    Hi,
    5% MVT is required to pay.

  60. Amit says:

    @Anil Kumar,
    Hi Anil I have also been asked for 5% MVAT, because my registration was done before April 2010. As I think is earlier it was 5% and builders got stay. But then govt. reduced it to 1%. Builder asked me to make a fixed deposit. If builder wins the case then we will get the amount back and if govt. wins then it will be paid.
    Have you got any other understanding of this??

  61. Anil Kumar says:

    How much MVAT is applicable on flats purchased & registered before 1st April 2010 ? Is it 1% or 5%

  62. Mahesh Sabane says:

    I hav purchased flat in pune in jun2010 & agreement in july. Now during possesion builder is asking for vat 1% & 2.75% service tax. Is it really required & if required then tell exact percentage of vat % service tax by maharashtra govt.

  63. Nishant Hadole says:

    So, if we as a buyer, paying 1% VAT to the builder, will that amount will be exempted from income tax, as that of Stamp Duty / Registration charges?

  64. kishore Bhayade says:

    hi
    i have purchase a flat in march but i am doing registration in november 2010 for that i have to pay 1% mvat to builder? court pass decision to pay mvat? and my last Q is how can government takes so much tax from buyer? Stamp duty, Registration, service tax, mvat for a one single house property?

  65. Ganesh Khapare says:

    Hi,

    The Maharashtra goverment has come up with the new 1% VAT taxation for all the Flats Registration done on or after 1st April 2010. My query is before 1st April 2010, did the taxes for the sale of the Flats were borne by the builder? If yes what was the tax percentage? and also why the 1% VAT tax has now to be borne by the buyer? I am asking this question, because recently i did my flat registration and the builder has asked for the 1% VAT check in the name of the builder. Also my registration was supposed to happen on 26th March 2010, but the builder delayed it intentionally and pushed it to 9th April 2010. My query is by postponing my flat registration, does the builder gain in any way? for i know i am at loss as i have to now pay extra 1% VAT on the sale agreement amount.
    Also can you please confirm if the VAT was applicable to builder earlier for building a township. For the builder never discussed about the VAT earlier during the negotiations, which means it was either included in the cost of the flat, or it was exempt for townships.
    Your prompt response would be greatley appreciated.

  66. Jagadeesh says:

    SIR/MADAM,

    IAM ACQUIRING A FLAT IN THANE DO I NEED TO PAY 1% VAT TO BUILDER ON AGREEMENT VALUE?…Please mail me the query

  67. Gajanansingh Chauhan says:

    Dear Sir,

    I would like to ask you, If My sale agreement has been done before 1st April 2010, is there any liability of vat towards my side?i.e should i pay vat amount to the builder or not? Pl. reply me at the earliest.

    Thanking you.

    Regards,

    Gajanansingh Chauhan

  68. Raju Babar says:

    Recently I have booked a Flat and its agrement made in Sep10. Now Builder is demanding 1%Vat on agreement cost.Pls. clarify that when should i pay this amt????
    And If you having any specific notification about it, Pls provide me… thanks…

  69. RAJ says:

    Is there any specific notification issued regarding applicanility of 1% vat on all sales deed registered after 1 Aprl 2010 and if any, please provide the reference of same.

  70. buyer. Builder will recover from buyer and pay.

  71. Naguji Khemnar says:

    I have purchased property in June. Now Builder is asking 1%Vat and 2% Sales tax. Pls. clarify that who should pay the sales tax Builder or Buyer????

  72. G.M.Katkar says:

    I have purshsed flat on December 2007 , builder charge me 5% vat at the time of possiton of flat & they have given me one letter stating that they woluld refund vat amt if is not applicable. they are not refund my money yet

  73. Mukesh says:

    This is all Builder and Government game. Builders are paying heavy amount to Politicians and politicians are the d@@s of builders. Some body is constructing flat for me, as a builder he is constructing flat charging land and construction cost. Vat on construction is none of our business. If this is true then Metal for car shall be under same thing. Builder to take care of this. There should be true value identification for builders.

  74. Refcy Joseph says:

    Pls let me know if it is okay if the builder opens a joint escrow accountwith the buyer wherein the vat money is deposited. what are the advantages and disadvantages.

  75. harish says:

    I retired from Bank in May 2009.
    Will I get enhanced Garutity?

  76. jatin bhat says:

    Hello All,
    As far as VAT concerned on the sale of flat,a builder must inform about this to purchaser.In general builder do not inform about this & make this charges as hidden.Also i would like to indicate here that if any VAT is apply,then the purchaser shall directly pay it to the govt. rather then paying to Builder.
    Further i would like to add that VAT may not apply on sale of property (when purchaser purchase it) but for the safeguard of future liabilities of builder,he ask for VAT to the purchaser,which he should not ask.
    In my statement,if am wrong anywhere then pls make me correct.Also anyone hurts from statement,then pls give me excuse.
    Thanks.

  77. Amit Bajaj Advocate says:

    Its true that the VAT should be levied on the sale of material used in the construction of Flats.

    I dont know about the exact provisions of leving VAT @1% on sale of property in Maharashtra. But construction of flats is a works contract and also involves labour element in its cost.

    I think the exemption or abatement for the labour element should have been provided from the sale value of the flat while considering the sale value of such flat for the purpose of leving 1% VAT on it.

  78. CA Sandeep Kanoi says:

    This is the normal practice in construction Industry. There is nothing illegal from the side of builder as he just want to safeguard himself from future liabilities which may arise on account of applicability of service tax and VAT on construction.

  79. Nil says:

    I registered property in Aug’09 & possession is in May’10 . Builder is asking PDC’s for service tax & VAT. Is this legal or not . Pl. guide

  80. Gaurev Khanna says:

    gundecha builder has denied me possession of my flat till i provide them with this additional money, This is ridiculous that I was never told to arrange for this earlier and now suddenly a week before possession I have been asked to shell out this money. How etical is this? and can a builder really hold one ransom by driving us to such a point, its very very difficult for a middle class person like me to arrange this kind of money in shuch a short span of time.

  81. Sameer N Shah says:

    I finalized my property early this month. While negotiations VAT was not discussed but now the builder is asking for the same.

    Is it a law now?
    Were builders paying the 5% earlier?
    Do I need to pay it to the builder?
    Can I not pay the VAT directly?

    Warm Regards, Sameer N Shah.

  82. Hemant says:

    Hi,

    The Maharashtra goverment has come up with the new 1% VAT taxation for all the Flats Registration done on or after 1st April 2010. My query is before 1st April 2010, did the taxes for the sale of the Flats were borne by the builder? If yes what was the tax percentage? and also why the 1% VAT tax has now to be borne by the buyer? I am asking this question, because recently i did my flat registration and the builder has asked for the 1% VAT check in the name of the builder. Also my registration was supposed to happen on 26th March 2010, but the builder delayed it intentionally and pushed it to 9th April 2010. My query is by postponing my flat registration, does the builder gain in any way? for i know i am at loss as i have to now pay extra 1% VAT on the sale agreement amount.
    Also can you please confirm if the VAT was applicable to builder earlier for building a township. For the builder never discussed about the VAT earlier during the negotiations, which means it was either included in the cost of the flat, or it was exempt for townships.
    Your prompt response would be greatley appreciated.

    Thanks.

  83. service tax refund says:

    as per low sale tax can not levy on immoveable properly is it constitution to levy this tax

  84. Suresh Bakare says:

    Is it applicable to resale flats too?

  85. Dayal says:

    the old method of computation at five per cent would be followed

    IF anyone can please clarify the computation of 5%

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