New VAT circular for Builders
Government has issued notification for amendment in provisions relating to builders and developers after judgment of Supreme court. In such notification government has issued / amended following for matters for vat liability calculated on actual rate method:
1) VAT would not be applicable from date of receipt of Occupation certificate.
2) If fixed percentage of amount has been deducted from the contract price for labor portion then such percentage should be applied on after deducting cost of land from total contact / sale price.
3) Output VAT shall be calculated on following amount after taking deduction of land and labor from contract / sale price: