Vat applicable on immovable property

This query is : Resolved

Guest

Guest (Querist)

20 August 2013 Dear Sir,

I am working in Pvt Ltd. company may i know that VAT is Applicable on Sale of Immovable property in Delhi, Maharasthra, Kerala and Uttar Pradesh

Thanks & REgards
davender

Guest

Guest (Querist)

23 August 2013 i feel very sameful that no body ca having a knowledge about that.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Hey Davender! About VAT on immovable property in India—here’s a quick rundown for the states you mentioned:

1. **Delhi:**
VAT is generally **not applicable** on the sale of immovable property (like land or buildings). Property transactions are mostly governed by stamp duty and property tax. However, if you sell building materials or construction goods, VAT applies there, but **not on the sale of the property itself**.

2. **Maharashtra:**
Similar to Delhi, **VAT is not applicable on the sale of immovable property**. Instead, property sale attracts stamp duty and other local taxes. VAT applies only on goods and materials used in construction, not the property sale.

3. **Kerala:**
Same principle—**sale of immovable property is not subject to VAT**. VAT is levied on building materials, but not on the sale of land or constructed property.

4. **Uttar Pradesh:**
VAT is **not applicable on sale of immovable property**. The transaction is subject to stamp duty and registration charges.

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### Summary:

* VAT applies **only on goods**, not on the sale of immovable property itself.
* Property sales attract **stamp duty and registration fees** but **not VAT**.
* VAT is applicable to construction materials or goods sold in the process of construction, but **not on the actual property sale**.

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If your company is involved in construction or selling materials, VAT will apply on those goods, but **not on selling the property**.

Hope this clears it up! If you want info on related taxes like stamp duty or GST (which replaced VAT for services and goods post-2017), just ask.

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