Akshat Singh (Accountant) 19 November 2015

Gift deed

Hi,
My question is one lady Mrs. "x" got a flat as gift from her brother. (Her brother and father are land owner and they got some flats due to Joint development with one of the builder in Bangalore)

The property is registered as GIFT DEED now. If I am buying the flat from her. Do I need to pay any service tax and VAT for the flat. Because when I go to any builder they include Vat and service tax as a separate component while calculating the price .

I know a bit that i have to pay the registration cost .

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1 Replies

Ankit 19 November 2015

Mr.Akshat singh

Check The Title of the Flat is Clear.

NO,Need to pay Service Tax and VAT

Builders charge because it is thier regular course of business of building and selling so they charge Taxes.(but not of that Lady)

Registration charges should be paid by you.After Registration is over. check the doucments online on Registration website showing details of Flat and Sale Deed Number,Is in your name and details of the flat are updated on the website. (Encumbrance Certificate – EC is record of registered documents over a property check on website of Registration and Stamps Department).

Best Wishes.