Regarding VAT(Value Added Tax) added to my Running Bills

[avipnv]

Dear Members,

Happy New Year!!

I would like to know if any one have come across this or can you link me to the
threads if this is a repeat question.

I have been charged 5% VAT(Value Added Tax) on all the running bills of my civil
construction, i have been making cheque payments to my contractor, who has a company registered with a current Bank a/c.
What he says is, he needs to file his commercials and blah blah...

Wanted to clarify with member experiences on this, if this VAT is valid for my construction?
I being a salaried induvidual, can i make use or reclaim this amount for my tax planning.

Kindly advice.

Thanks
Avi

[spacebuilt]

Dear sir,

generally VAT can be Paid extra to the contract amount or VAT can be inbuilt in the contract amount.

if your contractor didn't inform you regarding VAT before finalising the rates and Amount, you need not to pay extra amount as VAT...

If he hides this before finalising the contract, it is like cheating only... so don't pay extra ..and tell him that contract amount is inclusive of VAT.

regards,

Team SBC.(xxxxxxxxxxx)
Edited by admin
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[ardesarchitects]

Hi Avi,
Contractor can collect VAT 5% if only mentioned in the contract before you signed it, other wise its his problem to consider the same in the contract value itself .


Regards
Ar.Praveen.N
Ardes Architects and Interior designers
ardesarchitects@gmail.com
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http://www.ardesarchitects.com