Govt. of Goa releases FAQs on taxation of Developers w.e.f. November 1, 2015
Clarifies that VAT is not liable on agreement executed prior to said date to sell flat in under construction building, provided same is also registered before that date; Developers can discharge their tax liability by any of following options – (i) composition scheme u/s 7 (no land deduction or input tax credit), (ii) actual expense method under Rule 4A (deduction of land & actual labour & service charges), (iii) standard deduction method under proviso to Rule 4A(1) (land cost deduction available)
Further clarifies on point of liability in case of advances before agreement, states that tax will be levied from date of agreement and advance will be taxed as and when adjusted towards agreement amount; According to Goa Govt, VAT is applicable on ‘base price plus service tax’ : Goa Commercial Tax Dept. FAQs
Goa VAT FAQs on taxation of Developers
Published On - January 5, 2016
