1% VAT taxation in Maharashtra
Querist :
Anonymous
(Querist) 12 April 2010
This query is : Resolved
Hi,
The Maharashtra goverment has come up with the new 1% VAT taxation for all the Flats Registration done on or after 1st April 2010. My query is before 1st April 2010, did the taxes for the sale of the Flats were borne by the builder? If yes what was the tax percentage? and also why the 1% VAT tax has now to be borne by the buyer? I am asking this question, because recently i did my flat registration and the builder has asked for the 1% VAT check in the name of the builder. Also my registration was supposed to happen on 26th March 2010, but the builder delayed it intentionally and pushed it to 9th April 2010. My query is by postponing my flat registration, does the builder gain in any way? for i know i am at loss as i have to now pay extra 1% VAT on the sale agreement amount.
Your prompt response would be greatley appreciated.
Thanks.
Raj Kumar Makkad
(Expert) 13 April 2010
Earlier this liability was to be borne by builder which has now shifted towards buyer.
Querist :
Anonymous
(Querist) 13 April 2010
Thanks for the prompt response. Can you please clarify what was the tax percentage that had to be borne by the builder earlier?
Also can you please confirm if the VAT was applicable to builder earlier for building a township. For the builder never discussed about the VAT earlier during the negotiations, which means it was either included in the cost of the flat, or it was exempt for townships.
Querist :
Anonymous
(Querist) 13 April 2010
That i understand that the builder does not gain from the tax amount that i deposit. My question is before April 2010, builder had to pay some sales tax for each flat that he has sold, right? What was the tax percentage for the same? and also that tax would anyway be included in the total cost of the flat that has been negotiated, so in this case, if the builder purposely delays the registration to April 2010, shouldn't the builder pay the 1% VAT tax instead of the buyer, for he would be benefitting for not paying the sales tax which was applicable to him, if the registration had happened before April 2010
