REGD. VAT & SERVICE TAX ON BUILDERS

This query is : Resolved

Rakesh Pandya (Querist)
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21 June 2008 WE PURCHASE A FLAT OF 750 SQFT AFTER PAYING 120000/- STAMP DUTY & REGISTRATION NOW WE HAVE TO PAY VAT & SERVICE TAX ALSO PLS HELP ME NOW BUILDER DEMANDING 172490/- AS VAT & SERVICE TAX AMOUNT PLS HELP ME STILL RULE IS FINALISED OR NOT
THANKS IN ADVANCE
REGARDS RAKESH PANDYA

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 June 2008 Service tax is not applicable in case of purchase and sell transaction. Vat and service tax is mutually exclusive. Service tax is not applicable in this case.

Rakesh Pandya

Rakesh Pandya (Querist)
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22 June 2008 Dear Sir U may Read the Notification By Sales Dept They want to implement this vat tax on all builders from june 2006

Shyam Lal Naik

Shyam Lal Naik (Expert)
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24 June 2008 Sir, If u have purchased the readily constructed flat. No service tax.

If you have engaged the builder to construct the flat on your behalf, Service Tax applicable.

This principle has been pronounced by the Hon'ble High Court of Gauhati in the case of Magus Construction P. Ltd vs Union of India.

I am not competent to comment on VAT.

Rakesh Pandya

Rakesh Pandya (Querist)
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24 June 2008 Dear We Purchase Flat From Builder and Now Govt Put Some Notice To Pay Vat of Aggreement Value's 5% and 4% Service tax & Builder Get Set off for Vat He Paid on Purchase of Material & But he told us to Give Cheque of the Amount of 9.5% of Agreement Value Pls Help Me if Any Dicision From Court Regarding This Matter

Rakesh Pandya

Rakesh Pandya (Querist)
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06 September 2008 PLease Reply