NO way, purpose of booking amount is to lock the deal. Purchase amount was paid after OC. No tax payable.
Regarding VAT applicability for fully constructed houses
Hello Sir, i purchased a fully constructed flat in 2016. I paid a token amount of Rs. 1L two days prior to the Firm receiving the Occupation Certificate. Balance all my transactions are after the firm's receiving the OC including payments/Builder buyer agreement, allotment letter etc. The firm is insisting that since token amount of Rs. 1L is treated as 'Booking' the VAT is payable in my case further increasing my cost. My question is (a) Can the firm treat this as under construction deal even if I just paid token amount and all other amount after OC.
Asked 6 years ago in Taxation
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7 Answers
any payment made to builder, whether it be a booking amount or any payment installment, prior to receipt of OC, will be subjected to VAT
All payments made after OC will not be subjected to VAT payment
No gst for token money. Token money can not be treated as advance payment. When you book the flat you may need to pay advance money against such booking for which gst shall be applicable.
You could not get my answer. No tax is payable on token money. Tax is paid either on advance payment or final payment, whether it is income tax gst or VAT for earlier period.
The builder can only levy vat and service tax if the same is under construction property not other wise in your case
If you have purchased an under-construction property GST applicable. For resale properties, you will be free from paying the GST. In the case of land sale and purchase, GST is not applicable.
Dear
The GST is not applicable for constructed property.
You are only liable to pay the GST on advance amount paid to builder.
If you have not entered into a sale agreement then it cannot be treated as an agreement.
When did the builder demanded this VAT amount because there is no question of payment of VAT at this stage especially when the GST had come into existence in the year 2017.
If he had not demanded the amount at that time then it should be barred by limitation at this stage, hence you confirm the details and revert for more proper opinion.
