I did purchase Flat in Mumbai in March, 2006 (Agreement is done & registered in March,2006).
Is VAT payment to builder applicable for me ?
Builder had asked to put expected VAT money as FD in bank which cann't be broken unless builder permits it. What can be the solution?
Regards.
If the Agreement is registered prior to 20.06.2006 on which date the VAT on Under Construction Flat is made applicable. Amts paid prior to 20.06.2006 are not applicable.
VAT is payable on all the payments made by you on or after 20.06.2006. This position is cleared by the Department in FAQ on Builders which you can refer from www.mahavat.gov.in.
Whether builer has issued letter stating the amount payable by you on purchase of Flat. If yes, ask for working of the same and compare it with the working prepared by you on the basis of FAQ. If there is a difference, you can tell the builder accordingly.
Please also refer to some similar queries I have answered on my profile page.........MJK
CAclubindia
