Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

What is the status of the high court case for VAT on property

Tags: money, real estate, vat
Asked by Sachin Tambe, 22 Nov '09 11:40 am
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (1)

1.

ALIX is a property letting company. In 1995 it constructed an office building with an underground car park and, in accordance with a prior agreement, leased the property for a term of 27 years to IHK, a Chamber of Industry and Commerce and a body governed by public law. IHK sub-let part of the offices on a long-term basis to parties subject to VAT and sub-let part of the car park, some on a long-term basis to the sub-lessees and some on a short-term basis to other persons.Under the option to tax rules in Germany, SALIX waived exemption from turnover tax in order to be able to deduct input tax on construction of the building. Under the German law the waiver of exemption is only effective 'if the transaction is performed for another trader for the purpose of his business'. Hence, in the view of SALIX, the VAT charge on rent and the consequential ability to deduct input tax would only apply to that part of the property which IHK sub-let to parties subject to VAT, ie what SALIX considered ...more
Answered by venkatesaldevarajan, 22 Nov '09 11:59 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining

Related Answer

Q.
A

Building a base on the moon for mining is perfect Republican policy : scientifically pointless & involves giving a huge amount of taxpayer money to bi..more

Answered by Mickey