Do i need to pay vat now?
vishal
(Querist) 30 August 2012
This query is : Resolved
Sir,
I booked flat in pune on 13/8/2010.
i got possesion of flat on 12/10/2010.
As per new law for VAT, builder has to pay a vat of 5% if flat has been booked in beetween 20th june 2006 to 20 th june 2010.
As i have booked my flat after this date period, is above law applicable to me?
do me or my builder has to pay any vat?
Please help. little confused.
S Jadhav 98336 98330
(Expert) 30 August 2012
the amount of VAT to be paid for flats sold after the designated date in 2010 was reduced significantly to 1 % from the earlier 5 % or so.
In any case, the builder has to bear the burden of VAT though the builder tries to put the responsibility on the flat buyer. The Maharashtra state government has also issued a circular stating that the builder is liable to pay the VAT.
It is like when you buy soap or shampoo, the price includes the taxes that the manufacturer has to pay. so the builder should include the VAT in the price and it is not to be charged extra.
S Jadhav
