Himanshu Joshi (Accountant) (42 Points)
13 June 2016Respected Sir / Madam
I am purchasing a flat in MP please let me know that is there VAT applicable on Purchase of
Flat or not
And Secondly as I was in Construction co we were not charging VAT because the Tax imposed by the Govt was challenged in court
poonam
(Student)
(54 Points)
Replied 13 June 2016
Hiii Himanshu,
According to a recent verdict by the Supreme Court, the sale of a property that is under construction would be liable to value-added tax (VAT).
The ruling could have far-reaching ramifications for the real estate industry as well as property buyers. In the case of L&T versus State of Karnataka, the apex court held that the pre-construction agreements for sale of immovable property would qualify as 'works contract' and, therefore, VAT would be payable on the transaction.
Himanshu Joshi
(Accountant)
(42 Points)
Replied 23 July 2016
Thnq Poonam but what if the flat I am purchasing is completed but its the first registery when i do the same in my name
CAclubindia
