Vat on property by urd

  Mr Sandeep,

  The builder has to pay tax  to the department if his receipts cross the threshold mark(minimum required for registration)in the earlier priod.Although the builder did not register in time the tax department can collect VAT on the undeclared turnover also.It depends upon the both the builder and the department officials. However, you can ask the builder to issue an invoice for collection of VAT,which they generally avoid. Most of the times the builder may not declare past receipts in his returns and pay tax.So,you can insist on paying VAT on the payments made by you after his registration under MVAT Act only and see his reactions.....MJK

  Mr Sandeep,

 Under all VAT Acts in India only a registered dealer is authorised to collect taxes, and that also by issuing a proper tax invoice as specified(with necessary details) therein.So,during  unregistered period one can not collect VAT on his sales. This VAT collected should be at the correct rates and it should be declared and paid to the govt,within a fixed period,say a month or quarter,  through returns. If these steps are not complied with the govt will levy penalties,interest and it can also sue such violators in a  court of law.But, if the govt gets information that a person has done some sales in any period above the minimum limit required for registration they can levy tax ,penalty and interest in addition to prosecution. These provisions are avilable ,spread out in varios sections and rules, under each VAT law in India..........MJK