• Applicability of ST and VAT today

Hi, I am a nri based in Dubai and have purchased a property in Navi Mumbai Wadhwa builders. Couple of years back they were ready to give possession at which point of time last instalment was due from my side. However since the builder has not received OC I had not taken possession . The original agreement was registered in 2010 when the property was under construction. Now I want to complete the payment though they have still not received the OC. However the builder is now charging MVAT and VAT on the final instalment due, though he has not given me a formal invoice. AM I liable to pay MVAT and Service tax now that GST is applicable. It looks to me as if the VAT and service tax will go into the builders pocket. Kindly clarify
Asked 1 year ago in Service Tax from Navi Mumbai, Maharashtra

Hi

When was the OC received by the builder?

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

Since Occupancy/ completion certificate is not received before GST implementation, GST shall apply on the remaining installments that are due and to be paid after 30th June 2017.

Ask for an invoice from the builder.

Lakshita Bhandari
CA, Mumbai
2254 Answers
81 Consultations

5.0 on 5.0

Hello,

VAT & ST is still applicable as the amount was due long back and not in the era of GST.

The builder may or may not eat the money, it is impossible for you to find that out even if he issues you an invoice.

Trust this clarifies your query.

Feel free to call / get back in case of further clarifications.

Thanking You.

Regards,

Rohit R Sharma

BCOM, FCA, LLB, CERT. FAFP

Rohit R Sharma
CA, Mumbai
2104 Answers
91 Consultations

5.0 on 5.0

Hi,

Builder may charge VAT/ service tax for invoice relating to pre GST era.

Abhishek Dugar
CA, Mumbai
3576 Answers
162 Consultations

5.0 on 5.0

It is not applicable if total payment is made after BU Received

Vishrut Rajesh Shah
CA, Ahmedabad
631 Answers
13 Consultations

5.0 on 5.0

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