Suman Kumar Agrawal (Chartered Accountants) (226 Points)
02 October 2010One of My client have purchased Flat from Bulders who construct flats in their own Land. Can it attract vat laiablity to my Client.
chandra shaker
(TAX PRACTITIONER)
(59 Points)
Replied 02 October 2010
Here in this case if the said builder is a registered vat dealer then upon sales of any flat or any constructed portions by the said builder will liable for VAT taxes and accordingly the said builder has to pay the taxes to the concerned CTO Department against any sales made and vice versa the purchaser whether registered or unregistered dealer in CTO department cannot claim any input credit for his any outstanding tax due arising .
If the said builder is unregistered dealer then upon any inspection or scrutiny or investigation or search made by any vigilance and enforcement department or by the search made by the local cto department can issue a show cause notice to the said builder or real estate dealer for collection of taxes under works contract act or as a non composition dealer and may collect higher rate of taxes after deducting standard labour portion and other kind of tax imposition on the said entity.
claiming of any input credits are restricted in all state Governments for any purchases of real estate property
G.S.CHANDRA SHAKER
TAX PRACTITIONER_STP
Mobile.No.+91-9395323341/9951038001
Email.Id.chandrashaker7 @ gmail.com
chandrashakerstp @ gmail.com
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Survey, Search and Seizure under Income Tax Act 1961
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