Clarity on VAT & registeration charges
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Can somebody give me clarity on this topic ….
I am purchasing a flat in south bangalore for which the sale value is 50Lakhs , area is 1245 sqft .
Builder has indicated a split of 5 lakhs for BWSSB deposit, KEB deposit, car park;
balance 45L for construction and Land . Please clarify :
a) VAT of 4% is charged on 50L or 45L
b) Registeration charges of 6.65% ( is this figure correct) to done on 50L or 45L
Please give me urgent as I am planning for registeration and I am not getting proper info .
Please help
Regards
Raghs
1 Answer
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You need to ask the builder clearly on each aspect. I can tell you what I know based on my year long analysis, though I am yet to buy my home.
The apartment cost will have a land portion and construction portion, there are governement price guidelines available on land price in each area. The breakup could be 50-50%. For the apartment construction price you will pay VAT+service tax at the rate of approx. 8.6%. For the land price, you will pay stampduty+registration charges approx. 6%.
So the VAT+service tax and Stamp duty+registartion charges are on your apartment cost which I think is 45 Laks in your case.
Generally, all these things put together (Car+Club+BESCOM+BWSSB+Generator+Gas+One year maint+Sinking fund), you will pay approximately 20 to 30% extra on basic cost (i.e. flat+cark). Hope this has helped you.
