LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

Vishnu Modi   10 August 2015

Builder is asking for vat @2.5%

Hi,

I have a flat in Dharuhera, Haryana.

Cost of the flat is 18.5 lakh only. I got possession in Jan'14 but the builder is not processing registration without VAT.

Builder is asking for VAT @2.5 %.

Can you please help in understanding the VAT rules and regulations.

is it a liability of consumer..?

Kindly advise...

 

Regards,

Vishnu Modi



Learning

 2 Replies

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     11 August 2015

According to a recent verdict by the Supreme Court, the sale of a property that is under construction would be liable to value-added tax (VAT). In the case of L&T versus State of Karnataka, the apex court held that the pre-construction agreements for sale of immovable property would qualify as 'works contract' and, therefore, VAT would be payable on the transaction.

Vishnu Modi   11 August 2015

Dear Sir,

Kindly confirm the amount of VAT, as builder is asking for 2.5% and saying that it may increase to 6%. Is it not clear yet...

I had given them DD for registeration of propery which they are not returning. Earlier they were saying that your DD will be outdated after 3 months, and now they are saying that they have purchased stamp papers of that amount and if VAT is not paid, they will not process registration.

 

Kindly advise..


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register