I own a land in Mumbai on which i have constructed a commercial property ( Not Flats ) ...The construction is still going on...
All the work is done by me only...Like all purchases were done in my name only....
Now due to financial crunch , i want to sell whole land and under constructed building .....
How will the treatment of VAT/Service tax .....Is vat applicable if yes can i take the Set off of vat i paid...?????
VAT will not be applicable since you are not a dealer in sale of building.
Instead capital gains would be attracted depending upon the period of holding of the capital asset.
OK....
I agree with Harshal......MJK
54(k) purchases made on or after 1st April 2005 by a hotelier, which are treated by himas capital assets and which do not pertain to the supply by way of or as part ofservice or in any other manner whatsoever of goods, being food or any other article for human consumption or any drink (whether or not intoxicating) where such supply or service is made or given for cash, deferred payment or other valuable consideration.]
This is what Rule says....which clearly says i can not take set off of VAT paid on Raw materials.....
CAclubindia
