Vat return for con. of building

This query is : Resolved

seema singla (Querist)
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19 March 2010 A pvt. ltd. co. in Punjab has its own building. It has made additions to it . It purchased the materials from unregistered dealers and paid labour on its own. i.e. no contractor was appointed/fixed.
I want to know whether this purchases is to be mentioned/shown in the VAT return of the co.

CA. O.P. Agarwalla

CA. O.P. Agarwalla (Expert)
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17 April 2010 Please go through the provisions relating to purchase tax in your state VAT Act.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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03 August 2025 Regarding VAT return for construction of building in Punjab:
If the Pvt. Ltd. company has made additions to its own building by purchasing materials from unregistered dealers and paying labor directly (no contractor involved), then:

Purchases of materials from unregistered dealers are required to be declared in the VAT return.
Since materials are purchased and VAT (or tax) is paid on those purchases, the company must show these purchases in the return.
Also, if the company is using these materials for own use or capital assets (building additions), input tax credit may or may not be allowed depending on the local VAT rules and whether the construction is for own use or for business purpose (e.g. rented out or sold later).
In short:
Yes, include these purchases from unregistered dealers in the VAT return.
Mention them under the appropriate schedule/column (usually purchases from unregistered dealers).
Clarify whether input tax credit is applicable based on the Punjab VAT Act provisions.

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