5% vat tax
Dilip Raut
(Querist) 31 August 2012
This query is : Resolved
Hi,
I Purchased an underconstruction property in july, 2007 and that time the builder has not mentioned me about VAT tax. and now he is asking me to pay the applicable tax on my house.
My Question is..
1. Is the VAT tax is applicable to builder or buyer?
2. If needs to be paid by the buyer then whether i will be getting any government receipt for this?
V.Mahadevan
(Expert) 31 August 2012
News reports on the subject are contradictory and needlessly whip up the concerns of buyers.
Will the revenue authority come out promptly and clarify the issues involved?
H.M.Patnaik
(Expert) 31 August 2012
Ans.
1) Every time a sale bill is raised in connection with any Goods exigible to tax under the VAT Act of the respective state,
Value Added Tax at appropriate rate is charged and collected from the Purchaser of the goods and in the instant case it is the Buyer who is to shoulder the VAT liability .
2)The buyer will get the Retail Invoice issued by the Builder in support of payment of VAT dues.
V.Mahadevan
(Expert) 01 September 2012
My observations are limited to the woeful situation of buyers of residential premises in Maharashtra and with specific reference to the city of Mumbai.
