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.
