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: form 3cd :: ACCOUNTING STANDARDS :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: TDS :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: empanelment :: list of goods taxed at 4% :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: cpt
 
 
VAT (Value Added Tax) »
 Is it a modified Value Added Tax?
 GST regime: VAT Commissioner and CBEC to work with businesses
 Amendments in the Second Schedule appended to the Act (Delhi Value Added Tax Act, 2004)
 Guidelines relating to downloading of Statutory Forms-Modification thereof
  Grant of Registration under DVAT & CST
 VAT on petroleum products to continue, to be decided by GST Council
 Government rolls out settlement scheme to clear VAT, CST dues
 Maharashtra government offers VAT benefit to realty buyers
 Govt should focus on income tax instead of VAT
 Amendments in the second Schedule received from Finance Deptt.
 VAT exemption stays in tax reform bill

Haryana mulls VAT on real estate projects
June, 26th 2013

The Haryana government has announced plans to impose value added tax (VAT) on the builders, developers and promoters of real estate projects in the state, keeping in view the spur in activity of this sector. The move aimed to shore up revenues of the state could hurt the end-users or buyers of the property, to whom the tax may be passed on by the sellers.

This tax could see most of the builders falling in its ambit as it is proposed to be levied on any person or entity with a turnover of Rs 5 lakh.

Haryana excise and taxation minister Kiran Choudhry disclosed on Tuesday that they have initiated a survey to know about builders who could be the potential tax payers. "We would hold a meeting in July to decide the next course of action," she added.

In the fresh initiative, the tax would be levied only on those developers or builders who construct flats or houses on behalf of the purchasers. The builders would have two options - they can pay at the rate of 4% of the total project cost, under a scheme of excise and taxation department. Otherwise, the builder may produce bills of all inputs like cement or iron bought for the construction, for calculation of VAT to be paid. However, in the second option, VAT won't be imposed on the cost of land and labour involved in the project. Haryana has different slabs for VAT on goods. It is 5% for iron bar and 13.2% for sand.

If a builder opts for the first option then one would have to pay Rs 4 crore for a project of Rs 100 crore. The amount of the project would be calculated on the basis of turnover of the builder from selling flats or houses.

Terming the Haryana government's announcement as a negative signal, a builder said there should not be any tax on the real estate sector as it would indirectly affect the end-users. "Construction of houses is a social service as there are millions of people still homeless. Any new tax would adversely affect the construction activities in the state," said Pankaj Garg, a builder from Panchkula.

Chairman of Motia Developers Pawan Bansal said the developers would be forced to increase the rates of flats or houses after introduction of the new tax system. "It would adversely affect the already burdened real estate industry," he added.

According to Kiran Choudhry, businessmen who are involved in e-commerce would also be brought under the ambit of VAT.

She was talking to mediapersons at Chandigarh after launching an online grievance redressal portal www.haryanatax.com for traders and a toll-free service.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Portfolio

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