5% vat on flat (Property Law)

This query is : Resolved

Author : Meghna Kumra

PRO CHAT CALL

Posted On 20 August 2012 at 19:34

Dear sir,
We have purchased a flat in March 2009 in Pune.
We have got the possession in August 2009.

Now we have received a notice to pay 5% VAT. This VAT demand letter also has a component of 15% pa interest payable too.

We need to understand the law towards the VAT. As per our knowledge it should be 1%.

We have already paid the stamp duty and service tax. Do we really need to pay 5% VAT now?

Please help us.

Expert : raj kumar makkad

PRO CHAT CALL

Posted On 20 August 2012 at 20:23

Enforcement of law is automatic and there is no need to specifically send you prior notice to make the payment of VAT. Since the financial year 2008-09, VAT is must to be levied on all sale and purchase of flats hence the rate imposed is also correct with demanded interest.