Vat on property
Atanu
(Querist) 07 October 2012
This query is : Resolved
Dear Sir,
I have a queries with regards to the VAT applicable for the property buyer between 2006 to 2010 in maharashtra. Govt is asking for the 5% vat where as current structure is 1%. This decision is not really aceptable. I am sure there must be thousands of people in mumbai who are the victim of such a rediculas decision of govt. I want to know couple of things kindly clarify. As per i know VAT is calculated only on the CONSTRUCTION COST of the property OR the agreement value of the property and the LOWEST of the two should be considered but most of the cases builder is talking about directly 5% on agreement. I am sure if they reveal the construction cost that would be much lessr than agreement value and vat liability would be much lesser.In that case what should be done, shall we listen to builder or we have the right to ask for breakups.
Secondly, I have already paid 1% vat during the pocession. If i dont pay that addition 4% vat what would the implication of this.
Kindly let me know what could be best possible to option to get out of it.
Regards,
Atanu
R K JAIN
(Expert) 22 October 2012
VAT will be applicable in the case of agreement is made before completion of construction.
