Any news about VAT?

Q: I bought a flat in Malad in Jan 2010. I understand that the service tax issue has been setlled at Post July 2010 @ 2.5%. What about Vat? Pre April 2010 it was 5% and after that 1%..but there wa s a stay on this. What is the position now? Any news? The builder is forcing us to put the amount in an Fd or wont give us possession.

Sid, Mumbai

30th January 2012

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Replies (4)

I absolutely agree with you Sid, the ST and VAT is a burden on buyer. The VAT will be implemented by the state which will be charged on home buyers.

ashish, Ahmedabad

8th February 2012

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This is not what we are talking about Mr Khanna. The vat on flats is different . In any case if this too has to be calculated then it will not be from retrospect but new flat agreements. My agreement was dated jan 2010 and the rate applicable as Ashish pointed out was 1%... which is what the builder is demanding from us..even though this is not entitled to be paid by us but is a vat on the builder. But Both ST and vat the burden is being put on buyers.

If anyone has any further information please oblige.

Thanks

Sid, Mumbai

7th February 2012

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Hi All
Now in 2012 budget rate is change and its increases in the standard Rate of VAT up to 23%. The standard rate of VAT will increase from 21% to 23% from 1 January 2012.

Suresh Khanna, Mumbai

7th February 2012

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