applicabilty of MP Vat on flat purchase

This query is : Open

inder gupta (Querist)
Follow

29 June 2011 Respected sir/Madam

My query is

if i am purhcasing a flat in Shalimar Township in indore whethere there is Vat applicable on purchase of flat. and what is the rate of VAT

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
Follow

29 June 2011 You see either VAT or Service Tax either of the two shall be charged. The Builders are covered by Service tax if the building has not been constructed by the builder himself then only but if the building is constructed by the builder himself then the matter is different and VAT as applicable in different state shall be applicable.

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
Follow

16 July 2011 Mr Inder Gupta,
If you are purchasing a ready built house
both VAT service tax are not applicable.If the builder has given contract of construction of that township to somebody,then in the transaction between them vat and ST will arise and your price will include both these levies. If you enter into a contract with the builder before the construction is over then he will include the two levies also in the house value.It depends on the way the project is planned.If you buy a ready house the registration charges will be higher or full.If you enter into a contract registration charges will be on the 'undivided share' of land agreed upon.
etc.
MJK

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now