New VAT cir­cu­lar for Builders

Accommodation Times - - .. Current Affairs.. - By A.T. News Ser­vices

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:

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