MJ Krishnamurthy's Expert Profile

Queries Replied : 1703

About me

I am a retired Assistant Commisioner of Commercial Taxes of Karnataka. I retired in 1998 at the age of 58.During this service I tried to go in detail about sales tax laws. Immeadiately after retirement some companies wanted to retain me as their consultant. That is how my touch with the subject of VAT laws continued.The website of CAclub india is giving a good opportunity to share my knowledge with others. I am an exserviceman from IAF. So, Iam a little different from other taxmen. We should do some service to the community that has offered us so much, That is my purpose.....Bye.

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Jayendra Jadhav says : 5% VAT on apartment sale
Hello Sir, Based on your advice i went ahead and have asked the Builder for invoice for the MVAT which he is taking from us. We have not received any reply but he send another letter informing us to pay 5% MVAT on consideration value of the flat and also ADDED 5% MVAT on society charges and other charges. I do not understand this sir. You said the MVAT is on construction cost only, how is the builder asking us to pay MVAT on society charges? Kindly advise/

MJ Krishnamurthy says : Sale of machinery to NGO
Mr Raju, NGOs are not eligible for any VAT exemption on the supply of machinery made to them.....MJK

raju says : kvat
there is any exemtion for selling machinarry to ngo under kvat

Jayendra Jadhav says : 5% VAT on apartment sale
Thank you very much sir for your advice. I will follow your instruction.

MJ Krishnamurthy says : 5% VAT on apartment sale
It is a rule in all tax laws that tax collection is to be made by authorised dealers at authorised rates and by issuing regular tax invoices only. You can always refuse to pay any tax without a proper invoice.In a tax invoice the builder has to specify,his TIN no invoice Sl.no, total amount received from you,deductions,the taxable amount ,rate of tax and the exact amount of tax charged,date,signature and Co seal.This is the legal requirement for collection of VAT.You can give it in writing refusing to pay any tax(VAT) without a valid invoice. When such an invoice is issued,generally,such tax will be paid to the govt and also correct amount will be collected. To add some force to it,you make some more flat buyers to join you. This can be a case for Consumer Court. Many builders play a lot of foul game in making wrong collections and also evade taxes. Payment of interest is their burden, not yours.In fact, MVAT is to be paid as when advances are collected from you in their regular monthly returns......MJK