09 December 2012
From 20.06.2006 to 31.03.2010 1. Composition Scheme U/s 42 (3)- Under this scheme developer has to pay 5% tax on the agreement value. Land deduction is not available. Input tax credit is available subject to the reduction of 4 per cent.
My Query is developer has to pay 5% tax on the agreement value OR Higher of Agreement value or Value specied for stamp duty purpose
This will be the case when your agreement value is less than the Stamp Duty value of your area.
I dont have format with me, but simple letter on your letter head mentioning / referring prov. of vat will be sufficient, followed by notice from your lawyer can serve your part.
Thanks//Vaibhav Revert for more clarity. Click thank button to convey your appreciation.
10 December 2012
Mr Shh, Land cost 40% of the total cost is to be reduced for payment of tax u/s 4293) of MVAT Act. Cost of land and its development is taxable for vat.....MJK
10 December 2012
under different composition scheme its been said that land deduction will be available ,
how does land deduction helps in calculation of vat
For instance buyer purchase flat for Rs 50,00,000 (agreement value) and the value for stamp duty purpose is rs 52,00,000, than direct calculation will be 5% on 52 lacs, where is the role of cost of land
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