Hello everyone,
I want to ask One Question to all the experts of Caclubindia.
We purchased underconstruction flat in 2010.Registered Value was Rs.3 Lakhs.
The amount paid to builder before 31/03/2010 was Rs. 2,05,000.
and amount paid after 31/03/2010 was Rs. 95,000.
The builder has demanded Rs. 18,950 on account of Retrospective applicability of VAT ON UNDER CONSTRUCTION PROPERTY IN MAHARASHTRA .
The bifurcation made by the builder is as under
Service tax on Rs. 3 Lakhs @ 2.58% = Rs. 7750 .
Vat on amount paid before 31/03/2010 @ 5% of 2,05,000 =Rs. 10250.
Vat on amount paid after 31/03/2010 @ 1% of 95,000 =Rs. 950
TOTAL =Rs. 18,950.
My Question is that is the calculation correct ? Are the rates correct ?
I have read on one newspaper website that Actual VAT Impact will be around 0.5 % to 3 % of the registered value of the flat .And also that The value of Land on which property is situated will be deducted from the registered value of property .
but Our builder has not made any such deduction and the VAT Impact seems more than 5%.
Can anyone please explain the relevant provisions .Also what kind of VAT Payment receipt is to be obtained from the builder .
The answer by experts might be helpful to other property owners also .
So I request all the EXPERTS Please guide us in this regard .
Tons of Thanks in advance.
CAclubindia
