For all those who purchased flats between 2006 and 2010 and are still being harassed by builders for paying 5 % VAT.Here are the facts which I could gather after much research on this issue.Please read,understand and share it in your networks so that people are not fooled by builders. 1.VAT dues are only applicable if you bought an under construction property between June 20,2006 and March 31,2010.In other words,when you entered into sales agreement,you need to check whether the building in which you purchased the flat had already being issued a Occupation Certificate (O.C ) by local municipal body like BMC/TMC/VVMC etc.If you purchased the flat post the OC issued,your flat does not attract any VAT.So relax. 2.VAT is only applicable on construction material used and NOT ON LAND COST OR LABOUR COST .So for example,if you paid say Rs 10000/sq feet to the builder then builder should clearly provide calculation about what was land cost and what was material cost and labour cost...