VAT is a sales tax on the “agreement for sale” between builder and buyer. .Maharashtra government has issued a notification on the imposition of 1 per cent value added tax (VAT) on the contract price of flats mentioned in the agreement of sale registered on or after April 1.
Six things you must Know about Service Tax on flat purchase or sale
June 22, 2010 by 21 Comments
The Finance Bill 2010 has received presidential assent on 8th May 2010 and therefore a new chapter in taxing flat sale has started .In the definition of the taxable services of ‘Construction of Complex service’ [section 65 (105) (zzzh)], and ‘Commercial or industrial construction service’ [section 65 (105) (zzq)] given in the Finance Act 1994 now stipulates that construction of house (in any form – apartment / flat / row house / etc) by a builder in a complex is a “service”, and introduced the service tax of 10.3% on such a services .
Is Interest Paid to Builder on Outstanding Purchase Price of Flat Allowable U/s 24 of the I T Act?
February 13, 2009 by
In many cases, the builders offer the scheme to buyer for instalments and under an agreement they charge for the interest on the instalments. Then there may be case that the builder agrees to take sale price in instalment and for that he charges interest. Punjab & Haryana Court while deciding the case of CIT...
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