By Accommodation Times Bureau
Bombay High Court has dropped a bomb of VAT (Value Added Tax) on the home owners. The
notice was circulated by the builders to the owners following a ruling by the High Court. The
state government too issued a circular to developers for the pay of VAT.
VAT is obligatory for every house,plots, bunglows that are sold between June 20, 2006 and
March 31, 2010.
The state later reduced the VAT on the sale of flats to 1% from April 1st 2010, but still the
government is crunching the tax the rate of 5% making difficult for the buyers.
The VAT blow is not only a strain on the buyers but also the builders that are already struggling
with the present volatile industry. Hence, the developers now collecting the due VAT tax from
Every buyers has to pay the 5% VAT also interest at the rate of 15% and penal interest at 25%
rate if the due period is over. The buyers are getting anxious who are already paying service tax
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