Home   >>    Loan   >>    Home Loan   >>     Overview
Get Home Loan Offers
A maximum of 5 providers will compete to give you the best rates (Feb 2018)
Yes No    

Preferred Banks
  •  Any 5
  •  HDFC
  •  DHFL
  •  HSBC


I authorize the website and its partner providers like HDFC Ltd, ICICI Bank, DHFL and other banks/NBFCs to call or SMS me in connection with my application & agree to the Privacy Policy and Terms of use

Flat owners now to pay VAT to builders

Flat owners now to pay VAT to builders

Apnaloan.com Research Bureau

11 Jun 2008

The latest entrant in the list of costs involved in buying is that VAT or the Value-Added Service Tax.

A VAT of 5 per cent will be slapped on builders, which will eventually be paid by the buyers. VAT was introduced in 2006 but has been made applicable from 2008 in a circular issued by the sales tax (ST) department.

The department had proposed VAT on purchase of new flats in 2006. It was to apply on under-construction projects or where occupation certificate had not been issued.

VAT is not applicable for ready to move in flat that have been booked after 2006. It was applicable only on under-construction projects and those which had been booked but for which occupation certificate had not been issued.

Builders had opposed the proposal for the fear of reduction in sales due to the increase in the cost of a flat.

Builders who have not yet charged VAT from flat-buyers have included a clause in the sale deed that if the government insists on VAT, then the customer has to pay from his pocket. Know more about home loans on www.apnapaisa.com/loan.