Few days back I read news in "Business Standard" about VAT calculatioin on under construction property. It mentioned that VAT should only be calculated on remaining portion of the under construction project propery. It mentioned some 4 or 5 stages of 100%, 90%, 85%, 55% & 0% of total VAT.
Is there any circular from department of revenue (MVAT)? If yes can someone post a soft copy here?
I got it govt. web site
https://mahavat.gov.in/Mahavat/MyFold/DOWNLOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/KNOW_NOTIFI_MVAT_01_29_14_6_23_51PM.pdf
My builder sent me VAT notice for transaction in period 2006-10. In his letter he mentioned that the details VAt calculations cannot be given to you. I havetoappoint some CA and he will give details of VAT only yo the CA assigned by me notto media tly.
As per his calculations I have topay VAT of Rs. 1.2L. For a flat of 25L (I guess 5%).. But during registration I did ADF and paid 100% . The stage of construction at that time was 80%. As per this GR I am falling in forth stage and my VAT calculations are coming to be 55% of 1.2L.
Am I doing correct calculations? Why CA is required for this? Should I ignore builder's letter for VAT?
CAclubindia
