Vat for residential apartments
This query is : Resolved
28 November 2012
We are constructing residential apartments on our land and want to sell to individual owners.
Is VAT applicable to the buyers to be paid to us for submitting in the government?
If yes at what rate it is to be collected?
Also, when is this VAT payable - at time of registration or as we receive the instalment.
Is VAT applicable to the buyers to be paid to us for submitting in the government?
If yes at what rate it is to be collected?
Also, when is this VAT payable - at time of registration or as we receive the instalment.
29 November 2012
Please mention the name of your state. VAT is a state subject and VAT rules are being framed at state level.
02 August 2025
Hey! Here’s the scoop on VAT for residential apartments:
1. **Is VAT applicable?**
Generally, **VAT is applicable on construction and sale of residential apartments** if you are a registered dealer under VAT laws and if the sale is before the issuance of the completion certificate (i.e., sale of under-construction property).
2. **Rate of VAT:**
* This varies by state but commonly ranges between **1% to 5%** on the value of the apartment.
* Some states may offer concessional rates for affordable housing or first-time buyers.
3. **When VAT is payable:**
* VAT is usually payable **as you receive the payment (instalments)** from the buyers, not at the time of property registration.
* You need to issue tax invoices and deposit VAT accordingly with the government.
4. **After completion certificate:**
* If you sell a **ready-to-move-in apartment** (after completion certificate is issued), VAT is typically **not applicable**; instead, stamp duty and registration charges apply.
**Note:**
Local VAT rules vary, so it’s best to check the specific state VAT act or consult a tax advisor in your area.
If you tell me which state you’re in, I can try to get more specific info!
1. **Is VAT applicable?**
Generally, **VAT is applicable on construction and sale of residential apartments** if you are a registered dealer under VAT laws and if the sale is before the issuance of the completion certificate (i.e., sale of under-construction property).
2. **Rate of VAT:**
* This varies by state but commonly ranges between **1% to 5%** on the value of the apartment.
* Some states may offer concessional rates for affordable housing or first-time buyers.
3. **When VAT is payable:**
* VAT is usually payable **as you receive the payment (instalments)** from the buyers, not at the time of property registration.
* You need to issue tax invoices and deposit VAT accordingly with the government.
4. **After completion certificate:**
* If you sell a **ready-to-move-in apartment** (after completion certificate is issued), VAT is typically **not applicable**; instead, stamp duty and registration charges apply.
**Note:**
Local VAT rules vary, so it’s best to check the specific state VAT act or consult a tax advisor in your area.
If you tell me which state you’re in, I can try to get more specific info!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- ITR selection for salaries and capital gain less than L
- ITR returnFY25-26
- ITR 1: Details for showing Exempt Income
- Short Term Capital gain on shares bought and sold after 2018 onwards
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- Tax liability on income of freelancer
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
