Vat in goa

In Goa, is there any VAT applicable on the builder when flat is being sold by them?

 

Replies (7)

   Yes it is applicable,If  he enters into an agreement for construction and sale and takes advances,such cases will be treated as works contract and VAT will be applicable..If After completing the construction a sale is made it is not taken as works contract and no taxes are applicable.........mjk

Originally posted by : MJ Krishnamurthy

   Yes it is applicable,If  he enters into an agreement for construction and sale and takes advances,such cases will be treated as works contract and VAT will be applicable..If After completing the construction a sale is made it is not taken as works contract and no taxes are applicable.........mjk


Thank you for the response.

I quote from the Goa budget speech of this year : "25.  Sir, I propose to levy a tax on consideration received or receivable by the builder or developer by way of agreement to sale the flats or housing
project or dwelling units or row houses and the like, which are under construction or development. However flats or dwelling units whose agreement value is less than  `  10 lakhs will be exempted. If the value is between  `  10 lakhs to  `  100 lakhs, than the tax will levied at 1% of the agreement value. In cases, where the value exceeds  `  100 lakhs, the tax will be levied at 2% of the agreement value."

This appeared under the VAT proposals.

My query : whether the new proposals (as above) have been enacted, and as VAT, or some other levy? Also, if this is a new tax from this year, does what you mentioned in your response refer to this new tax, or existing VAT Act already had this works contract tax provision?

In the latter case, does it mean that there is a works contract tax plus a new levy of 1% / 2% additional now?

  No this is not new levy. This is introduced in the place of the existing rates in the Act. Please read Circular No2 issued by the CommissionCommercial Taxes Goa for all deatais. The budget proposals are enacted in the form of a circular. Visit www.goacomtax.gov.nic.in -click rules...circulars and lastly circular 2........mjk 

Thank you again, for the information.

However, the link provided by you does not lead to a live webpage.  Please see the attached screenshot of the page I found.  However, there are no circulars under Rules or Notifications.

Could you please advise what were the existing rates of works contract?

 

Dear Mr.M J Krishnamurthy, We are registered under KVAT for Works Contact Tax, our line of activity is Fabrication & Erection of structures. Request you to kindly advice the ratio for rate of VAT & Service Tax to be charges.

Dear Mr.M J Krishnamurthy, We are registered under KVAT for Works Contact Tax, our line of activity is Fabrication & Erection of structures. Request you to kindly advice the ratio for rate of VAT & Service Tax to be charges.

Hello!

kindly can any one help me out finding What is the Vat % in Gao for real estate cum construction company?

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