When it comes to buying a house, aside from finding the adequate finances for paying for the house, one also needs to pay taxes and duties that have been mandated by law. These can be a significant expenditure for a home buyer and aside from being financially prepared for these, one also needs to be aware of the importance of paying these taxes from a legal view point. There are four essential taxes and duties that one needs to pay when buying residential flats and these are as under:
1.Stamp duty – The stamp duty to be paid on Chandigarh property for sale is payable to the district administration as the city is a Union Territory. For the rest of the districts in Punjab, the stamp duty is paid to the state government. The payment of the stamp duty notifies the legality of the transaction between the home buyer and the seller or developer. A sale agreement that has not been duly stamped by the administration is not acceptable in a court of law.
2.Value Added Tax – The VAT levied on sale of goods is also levied on housing property as it pertains to the transfer of ownership rights from the developer to the buyer. However, VAT is only applicable in the case of under construction property and residential flats in Zirakpur.
3.Registration charges – The registration charges for any residential property is the duty to be paid for registering the property under the Registration Act which denotes the transfer of the property from the seller to the buyer. It is only after the property has been registered that the buyer can lay legal claim to ownership.
4.Service Tax – The service tax on buying property is payable to the central government. Again, the service tax is only applicable in the case of under construction properties. The calculations for service tax are based on certain fixed criteria for individual features while premier features like preferential allotment etc may incur additional tax.
With the implementation of the GST, taxation norms may change but all buyers need to be aware of basic costs. Owning a house of their home is a dream for everyone and the Exotic Group offers luxury at its best with their premium housing project in Zirakpur, the Exotic Grandeur. Exclusive penthouses and 4/5 BHK apartments at the Exotic Grandeur make life a lavish experience for all residents.
1.Stamp duty – The stamp duty to be paid on Chandigarh property for sale is payable to the district administration as the city is a Union Territory. For the rest of the districts in Punjab, the stamp duty is paid to the state government. The payment of the stamp duty notifies the legality of the transaction between the home buyer and the seller or developer. A sale agreement that has not been duly stamped by the administration is not acceptable in a court of law.
2.Value Added Tax – The VAT levied on sale of goods is also levied on housing property as it pertains to the transfer of ownership rights from the developer to the buyer. However, VAT is only applicable in the case of under construction property and residential flats in Zirakpur.
4.Service Tax – The service tax on buying property is payable to the central government. Again, the service tax is only applicable in the case of under construction properties. The calculations for service tax are based on certain fixed criteria for individual features while premier features like preferential allotment etc may incur additional tax.
With the implementation of the GST, taxation norms may change but all buyers need to be aware of basic costs. Owning a house of their home is a dream for everyone and the Exotic Group offers luxury at its best with their premium housing project in Zirakpur, the Exotic Grandeur. Exclusive penthouses and 4/5 BHK apartments at the Exotic Grandeur make life a lavish experience for all residents.
No comments:
Post a Comment