Government earns more than the taxpayer!

See how it works.

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 crs

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 .