Vat on sale of flats
Surendra
(Querist) 02 July 2014
This query is : Resolved
Dear Members,
Greetings for the day !!!
I have a query regarding applicability of Value Added Tax on sale of flats at Bhubaneswar.
1. Whether VAT is applicable on sale of flats at Bhubaneswar?
2. The Company is registered with sales tax department under the provisions of Work Contract Tax and deducting and remitting WCT from the running bill of the Contractors.
3. How would we differentiate payment of WCT (under state law) and VAT?
4. Does the Company require to charge VAT from buyers of flats? other than WCT deducted from contractors bill. if yes, please suggest the method.
Please suggest in the above matter, its really urgent.
Thanks & Regards
ajay sethi
(Expert) 03 July 2014
commercial query . contact your tax consultant . company can afford legal fees
malipeddi jaggarao
(Expert) 03 July 2014
WCT is deductable from the running bills of a contractor to whom the builder has given the contract.
VAT is a tax for value addition to be paid to the same commercial tax department and it is normally chargeable to the purchaser unless specifically agreed by the seller for not charging VAT from the buyer.
Both are independent and not inter-related.
If the builder is liable to pay VAT, normally it is charged to the buyer. Find out from Odisha Govt. Sales Tax Department whether VAT is applicable for sale transactions of flats. If yes, your builder is correct in demanding payment of VAT from you in the absence of specific relief in the agreement.
Surendra
(Querist) 03 July 2014
Thank you so much sir for your prompt reply. But I don't have idea about applicability of VAT on sale transaction of flats in Orissa VAT Act.
If possible please guide me in the matter.
malipeddi jaggarao
(Expert) 03 July 2014
Inquire in the Sales Tax Department in your area.
Surendra
(Querist) 03 July 2014
ok sir, thank you for guidance.
T. Kalaiselvan, Advocate
(Expert) 05 July 2014
Yes an enquiry with the department or a consultation with the local tax consultant will give more ideas about the issue.
