Published On: Tue, Aug 28th, 2012

Supreme Court Relief for Builders in VAT case

Share This
Tags

By Accommodation Times Bureau

Supreme Court of India had instructed Builders to pay VAT accrued on real estate transactions in Maharashtra on or before 31 Oct 2012. All the concerned parties and builders have to register with VAT authority by 15th Oct 2012.
The Hoble Court had also said that the VAT has to be paid without any interest or penalty in protest. If the government looses, the VAT so paid will be refunded to the concern registered dealers / builders.

About the Author

-

Displaying 8 Comments
Have Your Say
  1. vswami says:

    SC’ s directive has come in the wake of, and even while the controversial areas of the levy of VAT, besides Service Tax, continue to be debated also in legal circles, Perhaps, the court may be considered to have issued such an interim  directive, after weighing in its wisdom the balance of convenience. Even so, one is apprehensive of the possibility of the refund of VAT, if so granted as envisaged on a future date depending on the final outcome , not being in turn promptly refunded to the people from whom it has been recovered by the developers. Would it not have been eminently desirable had this aspect been foreseen,  suitably urged for and on behalf of the stakeholders, and been covered suitably in the said directive.     

  2. inder mehtani says:

    thnx for sharing such valuable information

  3. Sameer kulkarni says:

    Mvat should be paid by the builder or each and every flat owner. We have already paid the stamp duty so why this Mvat and we have also paid the sales tax please explain waiting for ur reply

  4. KS says:

    Though supreme court judgement is welcome. However, it still leaves the matter open and ambiguous. So many people are effected, logistics issues of recovering funds, lack of clarity on calculations of actual VAT amount etc. It would have helped if supreme court would have not asked for the VAT amount to be deposited by 31st Oct 2012 and instead mentioned that the same should be payable based on final outcome of the case. Also, no one has taken cognizance of the fact that Maharashtra Govts decision was adhoc and lacs of people are effected / troubled as to how they will arrange for the large sum of money. This MVAT is nothing but a legal form of extortion. This is what happens when we elect fools to represent us. They spend all the state money on corrupt / inefficient / low quality projects and then impose such taxes to cover the deficit.

  5. Deepak Sheth says:

    What Government wants is MONEY by any mode of collection.

  6. dilip bharade says:

    the levy of vat is totally unjust and adding agony to the purchasers. the developer is paying vat on all purchases and not claiming any set off for the vat paid and hence he is a ultimate consumer who has borne the burden of vat. now asking flat purchasers to pay vat is just unfair. and asking the developer to bear the burden is just rubbish.

    the govt. just wants revenue by any means and just pushing the matter forth. the levy of serice tas is yet another burden.

    moreso the govt. should collect the taxes at one point i.e. at the point of registration of sae agreements or sale deed instead of asking sales deptt and central excise to follow the matter.

  7. MJ says:

    1 more way of ensuring that the comman man is ripped off for paying MVAT…………. Hw is the common man supposed to survive is the bigest question post all this ?????? the day is not far when we will be asked to pay for the air we breathe !!!!!!!

  8. Nikhil says:

    Why don’t they come in open and talk about this? Government says builder must pay, builder ask the customer and the customer is affected. And what is the government going to do with this legal “extortion” amount is a question. This is an unjust law.

Leave a comment

*

Click Here For Accommodation Times Epaper





For Sample Copy Of Accommodation Times Click Here

Books