By Accommodation Times 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:
|Sr. No.||Stage during which developer enters in to a contract with purchaser||Amount to be determined as value of goods involved in works contract|
|1||Before issue of commencement certificate||100%|
|2||From the commencement certificate to the completion of plinth level||95%|
|3||After completion of plinth level to completion of 100% of RCC framework||85%|
|4||After completion of 100% RCC framework to the Occupancy certificate||55%|
|5||After Occupancy certificate||NIL|
For determining above percentage, builder needs to furnish certificate from local or planning authority certifying the date of completion of stages referred above and where such authority does not have a procedure for providing such certificate then such certificate from a registered RCC consultant.
If dealer fails to establish the stage during which the agreement with purchaser is entered, then the entire value of goods as determined after deduction of land and labor from the value of the entire contract, shall be taxable.
For making calculation as per above new procedure, revise returns can be filed up to 30th April, 2014.
New Notification Copy is with Accommodation Times. Please send your request to firstname.lastname@example.org