The basis for charging VAT is Agreement value. The computation for VAT for each flat will be as follows :-
Agreement Value say Rs. 50,00,000
(includes parking, amenities & all charges)
Less : Ready Reckoner rate as on 1st January
Of that year of Land say Rs. 20,00,000
(not to exceed 70% of agreement value)
Balance Rs. 30,00,000
VAT 5% Rs. 1,50,000
If your sales agreement is prior to June 2006, you are not required to pay VAT
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