First / second owner clarification
Hello,
A sale deed for a flat was cancelled with mutual agreement between two parties after staying for around 4-6 months. And then same flat sold on higher rate to another buyer by the builder. All 3 deeds (1st sale and cancellation deed of 1st deed and then another sale deed) of same flat were done before getting completion certificate. In this case, should the taxes like VAT be applicable on old agreement value or new one ? as for new buyer it was a not a under construction flat but a ready possession flat and moreover not a fresh and completely new flat, as some one already stayed in it for few months.
Please clarify on this and also let me know if some legal document/reference available in such cases.
Flat in Pune, Maharashtra
Regards,
Nilesh
1 Reply
Hi Nilesh
Recently, Mah. Government has imposed VAT on sale of under construction property along with land or interest in land on residential property purchased on and after 1st April, 2010. So the service tax and VAT for those who are residing in Mah. will be 4.09% if the property is registered prior to April 2012 and 3.575% from July, 2010. So, I would have advised you to purchase the flat or unit after the builder obtains certificate of completion from the competent authority to avoid payment of VAT.
You can undertand the implications of this notification on your case better from an expert. Refer lawkonect.com and seek consultation on your issue.
Hope this helps.
Regards.