One percent VAT on Property Sale from 1st April 2010
In the state budget, Minister Sunil Tatkare have proposed to levy one per cent Value-Added Tax on property sale from April 1, 2010. 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,”
Industrialist Premier league No Tax ;
common people loaded with Tax ; This is another burden. Very bad decision by Govt.
I have deposited 4% vat amount in the escrow account and have taken the possession of my flat in March 2009.
Please confirm whether I will get the refund amount.
hi,
i have just signed an agreement for a 975(built up)sq ft at 5400/sqft. now the builder is demanding 3.5% towards VAT. what is exactly the percentage is, i am totaly confused by reading all the information here it is 1%, some other websites says 12% some other says 4.5%.
what would be the actual i am liable to pay or is this my componenet or the builders componenet.
it is good government has put all the load on common man .the money we are paying others are enjoying .why dont they ask some frm politians who are not required to pay anything
Unconfirmed sources site that the Maharashtra Finance Sunil Tatkare himself has purchased 2000 acres of land under benami holdings – Has he paid VAT???
I have booked a flat on march 2009 and stamp duty and registration was done in July 2009… the builder is now asking for a Demand draft of 150000 rupees which 5% of the value… i have given them a blank check for same however the bulder is not giving me the flat keys till i give him a DD… please advice