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Karnataka vat implication for builders

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Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2013 i have 3 questions
1).A builder who registered under K VAT law as a works contractor & opted to pay composite tax i want to know wether advance payment received against sale of flat is taxable or not ?
2.) If the sale agreement is divided in two agreements
a) for sale of undivided share of land
b) for construction on land then what is liability under KVAT?
3) the same builder is not yet registerd under service tax is he liable for service tax on the said above transactions?
:) guide me

CA. Hari Kishan

CA. Hari Kishan (Expert)
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26 February 2013 As to implication under the KVAT on a builder, you may refer to rule 3(2).

1. Response to query 1, he shall be liable to pay VAT on the advance amount received

2. Only on the construction agreement VAT would be required to pay. As immovable property is not goods and hence shall not form part of the TO.

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