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Is Govt Looting General Public?

A Builder purchases 1000 sqm land in Goa for 1.5 cr. 

Economics of Government : 

Land purchase + Stamp duty + Registration + is 8 % = 8,00,000/-

Construction cost for 1000sqm SBA is 1300 × 20,000 = 2.6 cr

Sanctioned plan :

Cost for Architect plan @3% ( 7.8 lac) + RCC @2% (5.2 lac) of construction cost +  infrastructure tax @200sqm (2.6 lac) + overheads  which is = 

Land cost 1.5 cr
Stamp paper 8 lac
Plan 7.8 lac 
RCC 5.2 lac 
Tax 2.6 lac 
Mis 5 lac 

Total = 1.8 cr 

Builder has 13 apartments each 100sqm 

Each costing 45 lacs 


Flat Purchaser pays 45 lac + GST + Stamp Duty + Registration

GST 5.6 lac 
SD 1.35 lac 
Reg 90 thousand

Builder pays 1% VAT on 45 lac 

Total 8.3 lac


Per apartment sale government makes 8.3 lacs 

13 apartments × 8.3 lacs = 1.8 cr 

Builder had already paid ₹ 45 lac
Income tax for land purchase amount of 1.5 Cr.

Wait,

Land owner who sold land to builder paid approx 10 lac for capital gain to Government. 

All in this process after construction work was completed Builder earned profit 

Sale of 13 apartments 

13 × 45 lac = 5.85 Cr

Cost of construction 
1300 × 20000          = 2.6 cr 
Land cost
Architect RCC etc   = 1.8 cr 

Total.                        = 4.4 
Revenue                   = 5.85 

Profit                        =  1.45 cr 

After tax 1.45 cr - 30% = 1 cr 


Final economics: 

Builder earned 1 cr after working for 3 years selling off all his 13 units. 

Government earned

From vendor 10 lac 
From 13 unit sale by adding GST, VAT, Stamp Duty, Registeration 1.8cr 
From builder as IT 48 lacs 

Total 10 lac + 1.8 cr + 48 lacs 

Government earns 2.38 cr on zero investment 

In the minds of public builders are looting People.

This is economics of current situation

Wait.......... 

Height of all,

Profession tax , fringe benefit tax of staff , free gifts to Govt officials... I am already tired of calculations. 

Just remember Govt is your partner holding more than 75% shares without any investment.

This the ground reality of our tax structure.

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