08 April 2010
(1) As the Govt. of Maharashtra announced in the budget 2009-10, simple composition scheme for builders and developers. Under this scheme, one percent of VAT would be payable from 1st April 2010 on the contract price of flats mentioned in the agreement of sale, we hereby wanted to clarify from you is the 1% is also applicable to the Builders & Developers who are the members of MCHI and their case pending for decision in high court, however they are furnishing quarterly information for sale of flats and shops to the department? (2) As a normal builders and developers (who are not members of MCHI) further please clarify, if flat has been booked before three years, advance amount paid on booking after some amount paid on account before 31st March,2010 and the balance amount paid in full & final on sale agreement made in April 2010 what will be the status, vat would be charged on whole amount or on the balance amount which is paid full & final at the time of agreement after 31st March-2010. (3) It is further to be clarify that in total sale consideration value for example Rs.1000000/- society and electricity meter etc. charges collected extra from the purchaser whether these are the charges will also be considered in sale value for the purpose of levy of Vat @1% .
14 April 2010
Dear Sir, Good Questions. But still the notification has not been issued by GOM of amendement in rules and act. Its only a Budget proposal. Hope all this will be resolved soon.
CAclubindia
