Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ARTICLES ON INPUT TAX CREDIT IN VAT :: cpt :: empanelment :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: VAT RATES :: form 3cd :: ACCOUNTING STANDARD :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: TDS
VAT (Value Added Tax) »
 Cenvat Credit Of Additional Duties Of Customs [Cvd] On Imported Coal
 Excise Dept puts VAT refund on fast track
 Consumer fora receive 18 VAT plaints
 Appointment of Assistant VATO - F.3(14)/Fin(Rev-I)2012-13/DSVI/334
 Bio-diesel body seeks VAT relaxation
 HC seeks Delhi, centre reply on restaurants charging excess VAT, service tax
 Shakti Autos booked for evading VAT, bogus sales
 VAT sops to IOCL Paradip refinery hits Odisha revenue growth
 Government to announce new VAT rates in October
 World Wide Gst, Vat, Sales Tax Rate
 Article on Transition Process of Registrations under VAT / Service Tax Laws to GST Law

SC ruling on VAT: Housing developers say consumers will have to pay up
October, 04th 2013

With the Supreme Court upholding levying of value-added tax (VAT) on construction projects in Maharashtra, developers say it would lead to additional burden on buyers as they would be forced to recover the levy from the consumers.

The apex court had yesterday upheld a Bombay High Court verdict which had said that the state could levy 5 per cent VAT on sale of under construction houses between 2006 and 2010 in Maharashtra.

"Imposing 5 per cent VAT on the flats constructed during June 2006-March 2010 would impact consumers as most of the apartments under construction during that period were already delivered," National Real Estate Developers Council Vice-President Sunil Mantri said.

In 2006, Maharashtra had issued a circular, which had levied a 5 per cent VAT. However, the Confederation of Real Estate Developers Associations of India (Credai) challenged the government decision in the Bombay HC, which upheld the government view and which in turn was challenged in the apex court.

According to the verdict, an agreement entered into by a developer with the purchaser is a composite contract involving a contact for work and labour and contract for sale and the same comes within the meaning of 'works contract' and the provisions of Article 366(29-A)(b) are applicable.

"The SC has consequently dismissed the petition challenging the constitutional validity of section 2(24) of the Maharashtra VAT Act.

"However, in paragraph 115 of the judgement, the SC has clarified that activity of construction undertaken by a developer would be deemed as works contract only from the stage the developer enters into a contract with the flat buyer," Credai chairman Lalit Kumar Jain said.

He further said the apex court has also clarified the tax is chargeable by the state only on the value addition made to goods transferred after the agreement is entered into with the buyer.

The Supreme Court has also said VAT is not payable if a fully-constructed flat is sold to the purchaser as it would not amount to a works contract, he added.
Mantri, who is also the chairman and managing director of Mantri Realty, further said: "It would

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Wholesale Silver Jewelry

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions