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  tej patil - EngineerUpdated on 11/22/2014  
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Question about VAT - Composition tax/house built by a contractor

Hello Sir and Friends,I am building a new house in Bangalore, Karnataka State. I live abroad and i am giving contract to a builder to construct the house. When we were discussing about the payment terms, our contractor mentioned that what ever the amount i pay to him there will be a 4% vat(compostition tax) to be paid in addition to it(from my pocket). So i wanted to understand how this works sinc.
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