Taxpayment for flat

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Querist : Anonymous

Querist : Anonymous (Querist)

29 May 2013 i have purchase one flat at nalasopara during the purchasing the flat the builder told us that they have o c and you are not suppose to pay service tax and vat amount.and now he say it compulsory to pay tax of vat and service tax ,i have purchase on ready possion and blsg have the o c copy .pls help me i am not able to manage fund .

Rupesh Jain

Rupesh Jain (Expert)

30 May 2013 YOU HAVE TO PAY SERVIC TAX & VAT

Querist : Anonymous

Querist : Anonymous (Querist)

30 May 2013 i am not satisfied pls provide me circular for it that if the builder obtail o c and he sell the flats than also i have to pay tax

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

30 May 2013 What is this o.c..Is it occupation certificate?.If you have not paid any advances and purchased when it was already completed and o.c. was in hand,then it will be a purchase of an immovable property and no vat and st are applicable.Some builders try to collect vat on all their constructions. Here it will be 1% of the whole value...mjk

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Querist : Anonymous

Querist : Anonymous (Querist)

31 May 2013 DEAR KRISHNAMURTY SIR,
I WANT THE CIRCULAR IN THAT I WANT SHOW THE BUILDER THAT IT IS THERE IN THE CIRCULAR THAT WHEN THE BUILDER HAS OCCUPIED THE OCCUPATION CERTIFICATE THAN HE CAN NOT CHARGE THE VAT AND ST AMOUNT .PLS HELP ME WITH CIRCULAR SO THAT I CAN SHOW ON HIS PLACE . SIR PLS HELP BECAUSE MY DAUGHTER SURGERY IS THERE IN NEXT MONTH AND THIS MONEY WILL BE UTILISED ON HER OPERATION SHE IS ONLY 1 YRS OLD AND SHE HAS GO FOR BY PASS SURGERY OF HEART

MJ Krishnamurthy

MJ Krishnamurthy (Expert)

31 May 2013 Mr Author,
There are two authoritative decisions on this subject.
1) In the honourable Supreme Court of India Judgment in the case of M/s K Raheja Builders Vs Govt of Karnataka,dated 15-5-2005,reported in page 298 of STC Vol 141,para 19,it is clearly stated that an agreement entered for sale of fully constructed flat does not amount to works contract.
2) On the basis of this judgment Commissioner of Sales Tax,Maharashtra Govt, Mumbai has issued a circular No 12 of 2007 dated 7-2-2007. In this circular in para 4 it is clarified that sale/anagreement for sale of fully built house/flat is not a works contract.
As sale of a flat after completing its construction is not a works contract,and therefore, not liable for VAT.
For refrence visit the web site www.mahavat.gov.in,in the home page click Act & Rules--Trade circulars--subject wise--works contract--2007--Supreme court judgment in the case of K Raheja Builders,
then see para4,or a copy of the above judgment from any CA or advocate....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

01 June 2013 DEAR M J K SIR,
STILL ONE DABOUT ANY CIRCULAR WHAT SERVICE TAX SO PLS MENTION THE DETAIL FOR IT

Querist : Anonymous

Querist : Anonymous (Querist)

06 June 2013 DEAR M.J.KRISHNAMURTY SIR,
I HAVE ONE DOUBT THAT IS THERE ANY CIRCULAR ABOUT SERVICE TAX SO I CAN SHOW TO BUILDER THAT I HAVE PURCHASE FLAT AFTER THE PROJECT HAVE BEEN COMPLETE.PLS HELP WITH THE CIRCULAR SIR OR NOTIFICATION

RASHESH
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