30 August 2013
I m in the business of investing in rooms & selling it within a year. I don't purchase it from any Builder, I purchase it from individual parties and sell also to individual parties. My query is whether,
a) Vat is applicable to me? b) Till now I was filing my return under capital gains, now whether I have to file income tax under Business or Profession as the volume of dealing has increased considerably.
01 September 2013
It will be treated as your business income for Income Tax purpose. Sale of immovable property after renovation or improvement- Transaction of immovable property is not liable for VAT Tax. After purchase of property, if you enters in agreement to renovate as per need of buyer and transfers on completion of work, it attract VAT.
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