Vat and st for the flat bought in bangalore
Anupama K N V V K
(Querist) 17 September 2013
This query is : Resolved
Hi,
I have bought a flat worth 25Lac 2BHK in Bangalore and the builder has taken VAT and ST of about 147,861/- from the flat owners. Builder says that the SC order is still not yet come on who has to pay the VAT and ST. That is the reason we are collecting this amount from the owners of the flat.
Service Tax and VAT deposit Payment Stage : Service Tax Deposit for past demands
raised, VAT Deposit for past demands raised
VAT & Service Tax deposit payable Rs.147,861/-
(One Lakh Forty Seven Thousand Eight Hundred Sixty One only)
There are almost 1500 flats in that complex. Please let us know if this is correct or not.
Awaiting your response.
Thanks in Advance,
Annupamaa.
V.T.Venkataram
(Expert) 18 September 2013
As per http://articles.timesofindia.indiatimes.com/2012-11-10/nagpur/35033477_1_vat-liability-indirect-tax-buyers
"It is a peculiar situation as the order to levy VAT issued on 2006 is itself being heard in the Supreme Court after being challenged, and governments of Maharashtra and Karnataka are respondents. The state government in 2010 came up with an order to collect the tax which would be repaid with interest if the case was lost in apex court. "This order too was challenged through various petitions in the high court, which have been now turned down," said Renu.
There are chances that buyers may deny paying the tax citing the grounds that the case is still pending in the Supreme Court."
Raj Kumar Makkad
(Expert) 21 September 2013
No more to add as well advised by VT
