Instead of paying lumpsum 1% VAT at the time of registration of the agreement - like the Service Tax - pay VAT on every payment installment.
Maharashtra Government issues a notification to levy Value Added Tax on Property based on staggered payments received from home buyers.
Currently , property transactions attract VAT at 1% of the transaction value payable at the time of registration of the agreement. However, with the amendment in the Maharashtra VAT Act, the buyer will have to pay the tax at the time of making staggered payments to the developer. The treatment for payment of VAT is now aligned with the service tax, which is also charged based on milestone payments. With these changes, a home buyer making payments up to June 30 will need to pay tax of 5.5%, including 1% VAT and 4.5% service tax.
Read more at - Realty Buyers in State to Now Pay VAT on Staggered Payments
Related Stories:
1) CREDAI seeks abolition of stamp duty on landed property
2) Impact of GST - property prices may drop by up to 5 percent
3) Impact of GST on Real Estate - 2.5 % more tax on maintenance charges
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http://www.moneycontrol.com/news/business/real-estate/mumbai-property-prices-fall-up-to-40-on-rera-2297765.html
ReplyDeleteSo Pune expected to follow the suit ?
Already started. Builders negotiating without asking & hoarders are even more stressed out in Pune.
DeleteAlso check this news from Bangalore where due to IT layoffs issue, prices & rentals both are falling -
IT job cuts cause slump in Bengaluru house rentals, property sales -
The house rent market in Bengaluru which has enjoyed inflated pricing in the recent years, primarily riding on the affordability and demand from the IT sector, is now witnessing a slump following job cuts.
Residential rents are coming down by up to 10 per cent, with at least Rs 3,000-4,000 drop in rentals for a 2BHK, according to real estate agents in the city.
Realtors say the current crisis in the IT sector may have much to do with this. With the IT sector cutting down on hiring, the number of people freshly migrating to the city has come down, creating a lot of vacant homes. Also, companies have given little or no hikes and increments to employees, which has hit the affordability quotient.
http://www.newindianexpress.com/cities/bengaluru/2017/jun/06/it-job-cuts-cause-slump-in-bengaluru-house-rentals-property-sales-1613332.html
Since you posted about Mumbai, check this out too -
DeleteMumbai real estate: `launches in Q1 of 2017 dipped by 24 pc -
http://www.outlookindia.com/newsscroll/mumbai-real-estate-launches-in-q1-of-2017-dipped-by-24-pc/1071049
Thanks TheMonk, IT slowdow will definitely bring down Pune RE looks like.
ReplyDeleteNo other sector could afford these crazy rates