These Indian States Levy No VAT On Property

Buying a property comes with many attached outflows, including stamp duty and registration fees. Additionally, there is value-added tax or VAT and service tax on property, which a home buyer has to pay when buying a property in India. The service tax on property is stands at 3 per cent of the agreement value across the country while VAT levied, differs across states.

The state government, which charges the highest percentage of VAT on property, is Karnataka, a whopping 7 per cent of the agreement value. This move makes properties in Bengaluru expensive. When buying a property in Delhi and national capital region (NCR) areas, the home buyer will have to pay a VAT of 3 per cent. While, in case you buy a property in Mumbai or Pune, you have to pay only 1 per cent VAT.

However, the government of West Bengal and Tamil Nadu charge no VAT on property purchases.