Is Service Tax and VAT paid on a flat included for Capital Gains?

Hello, I sold a residential land and the capital gains is 66 Lakhs. I am now reinvesting this gain in a flat. The cost of flat is 58L. Registration charges is 3Lakhs (total 61Lkhs) 

Vat and service tax is 4 Lakhs . So my total acquisition cost of new flat is 65Lakhs (58 +3+4) 

In my Tax return, should I show Cost of new property purchased as 65L or 61 Lakhs? 

If Iam able to show 65Lakhs, the my long term tax will come only on 1Lkh (66-65L) 

Whether Vat and Service tax paid on flat purchase is to be included as cost of flat?
Asked 4 months ago in Capital Gains Tax from Hyderabad, Telangana
Yes you can include the VAT and Service tax in Cost of Acquisition
Shyam Sunder Modani
CA, Hyderabad
953 Answers
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You declare 1 lakh or as per calculation income, pay tax and file returns.

Why to approach Assessing Officer when you did not get any notice.
Shyam Sunder Modani
CA, Hyderabad
953 Answers
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Yes, you can include these taxes as a part of your cost of acquisition.
Abhishek Dugar
CA, Mumbai
755 Answers
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Hello Sir,

All you need to do is pay Tax on the Balance funds, show the challan to the bankers as a proof of payment and get your funds released.

No further action is necessary.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
706 Answers
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Yes, Service Tax & VAT is also a part of Cost of Acquisition.

Trust this clarifies your query. 

Feel free to call back/ get back in case of further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP.
Rohit R Sharma
CA, Mumbai
706 Answers
5.0 on 5.0
  Talk to Rohit R Sharma

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