02 January 2014
Dear Sir, One of my client started project in 2012-13 for building a residential property. In the same year his purchases exceed the prescribed limit and he gets his account audited under Income Tax Act. In the year 2013-14 he has registered his first agreement and wishes to obtain composite scheme of 1% VAT on agreement value. Now at the time of registration with sales tax authorities do we required to produce account of 2012-13 and purchases of 2013-14 or just an agreement would be suffice as he is not claiming any set off. Please share your valuable suggestions. With Regards
05 January 2014
The composition rate of 1% is applicable to apartment builders and not for other contractors. For other contractors,as per sec42 of Maharashtra VAT Act 5% composition rate is payable on the construction cost in lieu of regular method.Even for the period which your client has not registered,if the taxable threshold is crossed,tax liability arises.This problem arises when you declare your date of commencement of business.......mjk
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