Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: VAT Audit :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: list of goods taxed at 4% :: VAT RATES :: cpt :: ACCOUNTING STANDARD :: form 3cd :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4%
ę VAT (Value Added Tax) »
 Haryana govt exempts solar equipment from VAT
 AP to push for same benefits under GST for VAT exempted goods
 Andhra Pradesh to push for same benefits under GST for VAT exempted goods
 Petrol prices set to rise in Goa with increase in VAT
 Payment systems to remain open on all days from March 25, 2017 to April 1, 2017
 Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon a
 Shops cannot charge VAT on discounted items: Consumer forum
 Delhiites have to pay lowest taxes as AAP govt announces cuts on VAT on various items
 Tamil Nadu minister justifies VAT hike on fuel
 State Government urged to withdraw hike in VAT on petrol, diese
 High VAT may encourage illegal trading

CAs cant decipher VAT, how can you?
September, 19th 2012

Still havent understood how to calculate the value added tax (VAT) on your house? You arent alone. Known for their expertise in number crunching and tax counting, chartered accountants too havent been able to understand VAT calculation.

The Bombay Chartered Accountants Society recently wrote to deputy chief minister and finance minister Ajit Pawar saying it doesnt understand the formula given to calculate VAT. It is very complex; we have urged him to simplify it. There is no straight method to determine this tax liability, CAs wrote.

The society said the VAT calculation for those who bought flats between 2006 and 2010 will create problems and litigations. The government should design a scheme that will help developers and buyers discharge their tax liability in a hassle-free manner. It has worked out 1% VAT of the total agreement value formula for post-2010 buyers. A similar formula should be worked out and applied to those who bought between 2006 and 2010, the letter read.

The society also said that developers should pay state the same VAT amount they charge buyers, not less.

Shailesh Puranik, MD, Puranik Developers, said there are many anomalies in the VAT calculation. Government should bring more clarity on it. For post-2010 buyers the VAT is 1%. But for 2006-2010 buyers, no one knows how much VAT needs to be paid. If CAs dont understand, how will developers and buyers? he asked.

He admitted that 2006-2010 buyers dont need to pay 5%. Developers who paid state excess taxes can get a rebate. And they can pass this benefit on to the buyers by lowering VAT percentage. But many lost receipts/documents of the purchased items, Puranik added.

A sales tax department official said the matter should be addressed at a senior level.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions