DVAT :
PUBLIC NOTICE
Dated: 6th
February, 2013
All Contractors/ Builders/ Developers/ Collaborators, etc.
(in short contractor) engaged in
development / construction of immovable properties in Delhi are required to seek registration and pay VAT under Delhi Value Added Tax (DVAT)
Act, 2004, in case their turnover during
a financial year exceeds 10 Lakhs.
It has been noticed that the owners of
properties are engaging contractors for construction works against a lump sum
value or through collaboration / development agreement in which the contractor
gets the ownership of some part of the built up structure instead of cash
payment. There may be separate contracts for electrification, plumbing,
interior decoration etc.
In all above cases, the contractor who
supplies material and uses its skill/labor to carry out the works is normally
liable to pay VAT. The owner is not liable to pay VAT unless he sells the
building or a portion of it to prospective buyers before completion and thus
becomes deemed contractor for such buyers.
The Department of Trade & Taxes,
Government of NCT of Delhi is issuing notices to owners requesting them to
provide names of contractors and details of payments made to them in order to
assess VAT liability.
The owners are, therefore, requested to provide
the information regarding details of contractors and amount paid/payable to
them, immediately after commencement of any construction / repair /
modification etc. undertaken by them. In cases where department has issued
notices but the owner has not furnished the information so far, the same may be
now provided by 10th February 2013. In case of non-submission of
information by the owners, and especially in cases where property is not under
self-use, it may be presumed that the owner is himself a contractor for the
buyers of the property and thus would become liable for VAT payment.
The contractors falling under the above
categories but not registered with the Department so far are also requested to
immediately get registered with the Department in order to avoid penalty and
other coercive action under the DVAT Act and Rules.
Regards
CA.
Mona Singhal
Partner
Arpit
Gupta & Associates
Chartered
Accountants
701,
Nirmal Tower,
26,
Barakhamba Road,
Connaught
Place, Delhi-110001
Mobile:-
+91-9873082769
Website:-
www.caaga.co.in
No comments:
Post a Comment