27 April 2012
Hi, I have bought an underconstruction flat in Thane. Registration was done in Aug 2009. Builder is now giving possession but he is charging me 5% VAT.
According to my knowledge VAT is applicable only for those flats which were registered after 1st April 2010 @ 1% rate.
28 April 2012
Mr Shirish, You bought a flat during its construction,so,it is like entering into works contract agreement with the builder. Then it attracts wct tax @5%, the composition rate. Here they should not charge tax on the land cost,which will be around 30-40% of the total cost. Furhter, he should issue an invoice on sale of flat showing collection of vat @5%.Please take care of these points....MJK
30 April 2012
Thanks for the revert. But under this scheme, isn't Builder expected to get more than 4% set off? So ideally he should not charge me more than 1% Is it correct?
CAclubindia
