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VAT on Purchase of flats after 1st April 2010

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VAT on Purchase of flats after 1st April 2010

Last updated: August 25 2012
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  • VAT on Purchase of flats after 1st April 2010

    Hi Friends,

    Yesterday I have got demand letter from builder for VAT 1% of agreement value of my flat. I have purchased a flat in Sapphire Park (Pride Purple Group) in May 2010.

    Is the final decision on VAT is out? or Still any litigation/decision pending in court?
    Also can any one bought home after 1st April 2010, have your builder demanding VAT? If yes, then in whose name the VAT should be paid? builders or govt?

    Thanks in advance!

    Regards,
    Datta
  • #2

    #2

    Re : VAT on Purchase of flats after 1st April 2010

    Originally posted by datta.ca View Post
    Hi Friends,

    Yesterday I have got demand letter from builder for VAT 1% of agreement value of my flat. I have purchased a flat in Sapphire Park (Pride Purple Group) in May 2010.

    Is the final decision on VAT is out? or Still any litigation/decision pending in court?
    Also can any one bought home after 1st April 2010, have your builder demanding VAT? If yes, then in whose name the VAT should be paid? builders or govt?

    Thanks in advance!

    Regards,
    Datta
    Dear datta,
    1% VAT is applicable on flats registered after 1st April 2010. You need to pay it in the name of builder since it is indirect tax. Builder has to pay it to the Maharashtra State Tax dept by 21st of each month.

    Note: Decision on 4% VAT case is still pending in High Court.
    Last edited by Pethkar Projects; August 19 2010, 12:05 PM.
    Jitendra Pethkar | Pethkar Projects

    Comment

    • #3

      #3

      Re : VAT on Purchase of flats after 1st April 2010

      Originally posted by Jitu_Sir View Post
      Dear datta,
      1% VAT is applicable on flats registered after 1st April 2010. You need to pay it in the name of builder since it is indirect tax. Builder has to pay it to the IT dept by 21st of each month.

      Note: Decision on 4% VAT case is still pending in High Court.
      Jitendra...You are doing a great job on this forum. Best wishes...

      Comment

      • #4

        #4

        Re : VAT on Purchase of flats after 1st April 2010

        Originally posted by Jitu_Sir View Post
        Dear datta,
        1% VAT is applicable on flats registered after 1st April 2010. You need to pay it in the name of builder since it is indirect tax. Builder has to pay it to the IT dept by 21st of each month.

        Note: Decision on 4% VAT case is still pending in High Court.
        Jitu sir, the 1% VAT is state govt tax.
        Whereas, the IT department is Central govt authority . Isn't it ?

        Comment

        • #5

          #5

          Re : VAT on Purchase of flats after 1st April 2010

          Originally posted by HemantDesh View Post
          Jitu sir, the 1% VAT is state govt tax.
          Whereas, the IT department is Central govt authority . Isn't it ?
          Dear hemantdesh,
          Regrets. Collected VAT is to be paid to Maharashtra State Govt Tax dept. Correction made in the post. Thanks for your support.
          Last edited by Pethkar Projects; August 19 2010, 12:06 PM.
          Jitendra Pethkar | Pethkar Projects

          Comment

          • #6

            #6

            Re : VAT on Purchase of flats after 1st April 2010

            Originally posted by harishkulks View Post
            Jitendra...You are doing a great job on this forum. Best wishes...
            Dear harishkulks,
            Thanks for your kind words. Will always try to make my contribution as much as possible. Thanks for your wishes.
            Jitendra Pethkar | Pethkar Projects

            Comment

            • #7

              #7

              Re : VAT on Purchase of flats after 1st April 2010

              Originally posted by datta.ca View Post
              Hi Friends,

              Yesterday I have got demand letter from builder for VAT 1% of agreement value of my flat. I have purchased a flat in Sapphire Park (Pride Purple Group) in May 2010.

              Is the final decision on VAT is out? or Still any litigation/decision pending in court?
              Also can any one bought home after 1st April 2010, have your builder demanding VAT? If yes, then in whose name the VAT should be paid? builders or govt?

              Thanks in advance!

              Regards,
              Datta
              Ask the builder to show you the government notice asking for 1% VAT
              Also do not pay it in the name of the builder. Address the cheque to the govt if you are required to pay.

              Comment

              • #8

                #8

                Re : VAT on Purchase of flats after 1st April 2010

                Originally posted by Jitu_Sir View Post
                Dear datta,
                1% VAT is applicable on flats registered after 1st April 2010. You need to pay it in the name of builder since it is indirect tax. Builder has to pay it to the Maharashtra State Tax dept by 21st of each month.

                Note: Decision on 4% VAT case is still pending in High Court.
                One quick question...is it on flats registered after 1st April or flats booked after this date?

                Comment

                • #9

                  #9

                  Re : VAT on Purchase of flats after 1st April 2010

                  Originally posted by lazybone007 View Post
                  Ask the builder to show you the government notice asking for 1% VAT
                  Also do not pay it in the name of the builder. Address the cheque to the govt if you are required to pay.
                  Dear lazybone007,
                  There is clear state govt circular for 1% VAT which should be available at the builders' desk. This tax is to be paid in the name of builder since it's an indirect tax.
                  Jitendra Pethkar | Pethkar Projects

                  Comment

                  • #10

                    #10

                    Re : VAT on Purchase of flats after 1st April 2010

                    Originally posted by fundoo158 View Post
                    One quick question...is it on flats registered after 1st April or flats booked after this date?
                    Dear fundoo158,
                    It's applicability is for flats registered after 1st April 2010. Obviously flats booked after this date would also come under the vat taxation.
                    Jitendra Pethkar | Pethkar Projects

                    Comment

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