Vat calculation for new under construction flat

Hi
I'm from Chennai, Tamilnadu. Just I want to know the VAT (Value Added Tax) is applicable for new under construction flat or not? If yes, what would be the VAT % and how it is being calculated. Please help me to understand the calculation. My builder is not mentioned VAT % in Invoice, even thou they are not mentioned anything like VAT in invoce, just they are mentioning like "Other charges", but orally they are saying other charges are nothing but VAT. I'm not sure VAT is eligible for new under construction flat or not. Please help to find the solution for the same.

Thanks,

Arun G.

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3 Replies

(Guest)

VAT is a European Concept of indirect taxation. Only one indirect indirect taxation is allowed in developed countries while multiple direct or indirect taxation is not allowed and in case of multiciplicity, other indirect taxes are amalgated in VAT and the concept of Unique Identification numbers is unknown in India. Petrol hikes lead to hike in all types of consummables and form indirect taxes and hiked indirect taxes are subtracted from VAT. For imported goods GATT governs VAT. Strangely India being a founding member of GATT is unable enforce GATT rules and hence India's voice is not heard in WTO or GATT meetings/Conventions. VAT does not apply to RIGHT TO LIFE consummables like house building, medicines. Manmohan Singh the so called Gurdwara Financed economist is blissfully unaware of the famous paradox "THE MORE YOU TAX, THE MORE REVENUE YOU LOOSE". Courts too will never know what this paradox is all about and how is it linked with the law of diminishing mariginal returns as well the DIOMAND VS WATER PARADOX.

(Guest)

Why don't liberals understand that cutting taxes increases government revenue?

Ronald Reagan did this and experienced a 9% growth rate and increased total government revenue by over 115%.. And this was during the Carter recession! It's simple people, the more you tax the more you waste. The less you tax, the more people have to spend which means more revenue.... DUH! Obama's growth rate is at a mere 1% after spending trillions!!! Sorry libs, I know how you hate facts..

2 months ago
(Tiebreaker)
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Geez micheal, perhaps you should read up a little. Try researching the community re-investment act of 1998 the billy clinton signed into law forcing banks to give out sub-prime loans to people who could never afford to pay them back. This is what lead to the housing crash and thus the situation we are in now. Another liberal ideal that went astray.... Thank you!

2 months ago

CK, cutting the income tax from 70% to 23% across the board is a tax reduction like no other. Later the tax went to 25%.. Whats your point?

https://money.cnn.com/2010/09/08/news/eco…

2 months ago

(Guest)

VAT means VAlue Added Tax . Since your house is under construction it has NO VALUE TO ADDED AS A TAX. Just from Developed world's USAGE of VAT applies to commercial activities.House bulding for shelter is not a commercial activity.