INFO on vat, servicetax, registration charges?
1
I need info on few terms
If i booked flat today, for ex
–> basic cost — 30L (1200 sqf * 2500)
–> Car parking — 2L
–> water+power — 1.5L
–> club house + others — 1.5L
Now,
1) What is agreement value?
2) What is service tax percentage as per govt? and on which value it will be calculated?
3) What is vat percentage ? and on which amount it will be calculated?
4) what is registration percentage ? and on which value it will be calculated?
Can you send above details?
Probably almost all buyers might have similar questions. It will be good , if you team come up with an article.
7 Answers
0
accepted
Based on the assumption that the basic cost of the property is broken down into 25% land cost and 75% construction cost, this will vary from project to project
1. Cost of land is ‘25% of basic cost’
2. Cost of Material and Labour is ‘75% of basic cost’
3. Of the 75% in (2), ‘30% is labour and 70% is material.’
4. No VAT/Service tax is payable on land
5. Labour component is taxed at ‘10.5%’ = Service Tax
6. Material is taxed at ‘13.5% = VAT’
- VAT = Basic Cost x 75% ( Construction Cost ) x 70% ( Material Cost ) x 13.5% (VAT rate)
- Service Tax = Basic Cost x 75% ( Construction Cost ) x 30% (Labor Cost) x 10.3%
- Reg & Stamp Duty = Basic Cost x 7.78%
1
Does govt put on these percentages? or it depends on builder?
0
I got price brakup for one project (sarjapur main road)
- Super Buildup area: 1054
- price – 2975/sft
- basic price – 31,135,650
- cost of construction – 27,13,450
- cost of land – 4,22,200
- vat @ 14% – 2,85,518
- Service tax @ 10.3 – 90,026
It seems cost of land is not even 15%. Generally what is best percentage? what are pros/cons with max percentage?
0
VAT & ST are not applicable for the land component, so higher land component implies lower VAT/ST. Ratio of Land component to Construction cost is from the builder and not specified by Govt.
I have seen Galaxy Orchid Enclave in Whitefield where land to construction ratio was 45:55
0
Reg & Stamp Duty …. Some builders calculating on cost of land only … some builders are calculating on basic price.
0
Hi Harsha,
How do we verify the Service tax and VAT taken by the builder is actually paid to government. If it is paid how much is paid and how much actually it comes to me.
I mean to ask do builder also need to pay Service tax and VAT for some part. Or builder is wrongly asking for more money.
Regards
Avdesh
0
Hi Harsha,
I recently checked out a flat in Belathur, near Kadugodi. The builder’s sales team told me that that the cost for the apartment would be as follows:
1. Cost of Land – 1448000
2. Cost of Construction – 1395750
The cost of construction includes –
a) Car parking – 1,50,000
b) Bwssb/Keb = 1,50,000
c) Amenities – 50,000
That means my the cost of material and labour out of the construction cost should be somewhere close to the figures given below:
1. Material and labour – 1045750
2. Labour – 313725
3. Material – 732025
What in your view should be the taxes applicable on this property as the sales guy from the builder’s team did not give me any exact figure stating that there are some charges which the government is forcing the builders to collect from home buyers.
Please let me know what all charges will be applicable on this property as i am planning to take up an apartment there soon.
Thanks and Regards,
Sahil Gupta
