A division bench of the Gauhati High Court has ordered the Commissioner of Taxes, Assam, not to impose VAT on purchase of flats, said the Assam Real Estate & Infrastructure Development Association (AREIDA). In a release here today, the Association said that the Tax Department recently started conducting raids demanding that all flat purchasers are
liable to pay VAT with retrospective effect from May, 2005. The release said that the imposition of VAT on flat purchasers that too with retrospective effect from 2005, would seriously affect lakhs of flat owners. The AREIDA was forced to move the Court and the order was issued on May 22, the release said.