While buying a flat or a duplex, there are other charges to be paid besides just the house price. One of these is External Development Charge. When a buyer buys a flat, he has to pay a charge along with the price of the house. This charge is actually a tax imposed on builders by the state government. In a housing project, apart from the house, the builder takes permission from the local administration to construct public facilities like electricity, water, roads and sewerage. The changing administration of these facilities collects external development charges from the builder. Since these facilities are available to people buying houses in housing projects, builders add this charge to the price of the house. It is different for people buying houses in the same project.
