Regarding vat rule

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Pradnya Chetan Raut

Account Executive

23 Points Posted on 10 August 2011

Respected Sir / Madam,

I m having one problem regarding VAT Liability.

I purchased new flat in the month of March 2010 & recd possession in April 2011 so my buider is asking for VAT from me;

but the problem is my builder was not having VAT number til now, he recently applied for the same.

so please help me whether i have to pay tax to him or not. when he is not having VAT no. for the concern period i.e. 2010-11 then how could he demand from me ?

Please Help Me.

Regards.

Replies (3)

SIVA KUMAR

CA Final Student

56 Points Posted on 11 August 2011

Ask him to pay the VAT to the depatment against his TIN number and then reimburse the same to him.

Pradnya Chetan Raut

Account Executive

23 Points Posted on 11 August 2011

Thanks for replying.

But my question still stands as it is. I wanted 2 know that if he was not having VAT No. till now, then how could he ask for the same. i done my registration in 2010-11 & according to my knowledge if the person is not having VAT no. for the concerned financial year he is not suppose ask for payment of VAT.

SIVA KUMAR

CA Final Student

56 Points Posted on 12 August 2011

Even though he was not registered by the time of selling the house to you, but during the year his receipts might have crossed the exemption limit and he is liable to collect VAT then he has to register and he has to pay VAT amount against his receipts. So he is asking his clients to pay VAT.