Vat on flats

shoaib (Querist) 05 February 2013 This query is : Resolved
Sir,

Please provide me the provision regarding VAT like whose liability is to pay VAT on Purchase of Flat. Whether builder has collection power. Whether it is the liability of the buyer to pay VAT. Please provide detail provisions with sections legal requirements

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ajay sethi (Expert) 05 February 2013
academic query

R K JAIN (Expert) 06 February 2013
There is no VAT on the purchase of flat. There is VAT if the flat is purchased in installments since the Court says that the flat is constructed by developer on your behalf and he is contractor and he has to pay the VAT and the contractor/developer will recover the VAT from the allottee.

shoaib (Querist) 06 February 2013
Sir, I will be highly obliged if any judgment of Provision of law will be provided regarding the builder can collect VAT from the allottee

Raj Kumar Makkad (Expert) 07 February 2013
Buyer has to pay and seller has to get it deposited with Govt. and this is the provision of law.

R K JAIN (Expert) 08 February 2013
Pl go through the judgment of Honourable supreme Court in the case of K Raheja Development Corporation Vs State of Karnatka reported as 141STC298(SC). On the basis of this judgment the States are collecting the tax from the developers and developers are collecting the tax from allottes. But this judgment has been doubted in the case of Larsen & Toubro Limited and another vs State of Karnatka reported as 17VST460SC and the case is pending before larger bench of Supreme Court.