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TOPIC: vat and service tax on property in bangalore

vat and service tax on property in bangalore 3 years 2 weeks ago #3212

Question posted by Sandeep79 in the following link:

www.indiarealestateforums.com/news-feed-...truction#comment-841
Is the below rate for VAT and ST correct in Bangalore
VAT @ 14.5% on 70% of the cost excluding land
Service tax @ 12.36% on 25% of the total Cost

Does Car Parking, Maintenance Deposit
KPTCL/BWSSB Charge are also attract VAT and ST
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vat and service tax on property in bangalore 3 years 2 weeks ago #3213

Hi Sandeep,

As far as I know, VAT is around 5.5% of the cost of building. Service tax, as mentioned by you, is around 12.5% of .25 of the total cost.

As per government rules, a builder should not sell car parking. Hence, car parking should not attract service tax and VAT unless it is part of FSI.

Additionally, VAT is chargeable only on value adding steps. It is not chargeable on maintenance cost. Similarly, service tax is not applicable on maintenance cost as generally service tax is applicable only for the service of construction of property.

The other connections like KPTCL or BWSSB charges also do not attract VAT or ST at least from the builder's end.

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vat and service tax on property in bangalore 2 years 11 months ago #3341

Additionally, I believe the 14.5% VAT is general VAT and not that works contract under which construction of house falls. For works contract is comes around 5.5%.

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vat and service tax on property in bangalore 2 years 5 months ago #6234

Hi,
I am from Mana Builders Pvt.Ltd, based in Bangalore.
1) My ques is what is exact percentage of VAT for under construction project. In Bangalore different builders charging different VAT percentages, like 5.5%, 4%, 7%, 9.5% &14.5% on 70% of total cost.
in both scenarios (A) for Joint Development (B) builder owned property.
2) VAT & Service Tax calculated on only Total basic cost or on Grand total cost including clubhouse charges, car parking, Bescom & BWSSB charges, maintenance, & corpus fund.
Please give clarification on above mentioned points with any Govt approved sections numbers or any weblinks which are from Govt authorities. Because every builder showing their own calculation which looks correct. so particularly we need your answers with Govt approved letters or links or copies. That would help buyers for making right decision.
Thanks,
Chethan

Question posted by Chethan in the following link:
www.indiarealestateforums.com/news-feed-...ruction#comment-2733
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vat and service tax on property in bangalore 2 years 5 months ago #6235

Hi Chethan,

1) The thing is this depends on how VAT is calculated. If VAT is calculated based on the material cost, then it is applicable at 14.5% of material cost.

Another calculation is done dependent on the total cost of flat. If it is done so, then it calculated as 5.5% of the total cost of flat.

I am trying to find some government documents for this but couldn't find anything yet.

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Krish
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vat and service tax on property in bangalore 2 years 4 months ago #6350

Hi, sir,

We are purchasing a flat in Bangalore (Flat price - 54 LAkhs) in Nagarbhavi. This is partially completed project i.e. the builder has kept some works like painting on hold. they are even not telling if they have got completion certificate or not. please tell us if we have to pay VAT & Service Tax or not

Question posted by shilpa nayak in the following link:
www.indiarealestateforums.com/news-feed-...ruction#comment-2808
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vat and service tax on property in bangalore 2 years 4 months ago #6351

Hi Shilpa,

If he has not completed paint work, then completion certificate would not have been obtained. Hence, service tax and VAT may have to be paid in this case.

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Krish
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vat and service tax on property in bangalore 2 years 3 months ago #6564

Hi, can any body please tell me what are the VAT and service charges on ready to move in flats in Bangalore BMRDA approved?
My owner is charging 14.5% VAT on 75% of cost of building and car parking and 14% service tax on 25% to cost of building and car parking.
Is this charges applicable on all flats in Bangalore,

Question posted by Ramesh in his profile page:
www.indiarealestateforums.com/5000-ramesh/profile
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vat and service tax on property in bangalore 2 years 3 months ago #6565

Hi Ramesh,

I believe the cost is 14.5% of 70% of building cost. The service tax is calculated right.

Thanks and regards,
Krish
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vat and service tax on property in bangalore 2 years 3 months ago #6598

Hi,

I have a clarification on below .

I have purchased a flat and is still in construction stage and sqft is approximately 1843 and cost is around 1.2 , out of this basic cost is 56 lakhs and with bescom,bwssb and othrs it is 63 lakhs can you let me know what should be the VAT and ST in Banglaore.

Builder has charged me 14.5 percent VAT and 12.36 ST as i bought this before March 31st .

Please refer some legal documents if you think is not appropriate.

Question posted by As in the following link:
www.indiarealestateforums.com/news-feed-...ruction#comment-3010
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