VAT ON HOUSE PROPERTY IN THANE,MAHARASHTRA

VAT (Value Added Tax) is applicable on sale of goods.

A FLAT is an immovable property and not a Goods. 

As such, how does the question of payment of VAT in the sale/purchase of Flat arises?

But builders are asking 1% VAT on agreement value,its a ready to occupy flat

I think builder ask for service tax, U confiem with Builder for that and says that vat is not applicable for purchase property.

U confirm with builder please( some mistake in type), sorry. 

Sir please check the below and guide me whether i need to pay or not

The Maharashtra Government has decided to levy one per cent Value-Added Tax on property sale from April 1, 2010 in its Budget for 2010-11. All sale agreements registered on or after April 1 will attract one per cent on the contract price of flats mentioned in the agreement of sale.

For deals closed before April 1, the old method of computation at five per cent would be followed, subject to the Bombay High Court stay on collection being lifted, according to a Sales Tax officer.

The officer pointed out, this time round, the State had brought in an amendment to VAT in the Assembly and hence there could be no further dispute on the matter.

With the court stay in force, builders were depositing the VAT component in an escrow account pending the outcome of the case. Some of them were even accepting post-dated cheques and indemnity bonds for the amount from buyers.

The Maharashtra Finance Minister, Mr Sunil Tatkare, said, while announcing the State Budget on Thursday, the levy was in accordance to the Supreme Court judgment which said “VAT becomes leviable on the sale of construction material used in the construction of flats,”

Mr Pranay Vakil, Chairman, Knight Frank India, said the decision though prospective, ended an issue that was unclear till now.

The Maharashtra Government has issued a Notification in this regard.  (Copy attached.).

Thank you Sir

My registration done on Nov 2099 & builder is refusing the possession without 5% vat Fixed deposit certificate, what should I do?

ther was sceme of 30 independent bungalow and row houses from that i purched land from builder then done agreement with same builder now builder is builder is refusing the  possession and asking for vat and service tax please let me know what to do