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New VAT rule for Delhi builders

Comments(4) Sub Category:Delhi-NCR,Realty News,Residential Real Estate Posted On: Apr 23, 2012

The forum for Tax Advocates asked the Delhi Government to come out with a new scheme for builders and land developers who have been constructing buildings and offices on contract basis for non-payment of Value Added Tax.

The president of the advocate association feels that in the coming budget for 2012-13 the Delhi Government should unveil an amnesty scheme for builders and land developers, who are bound by the Delhi Value Added Tax Act to pay VAT.

This amnesty scheme would also bring a large number of small builders under the tax umbrella and probably lead to collection of Rs.300 crore extra each year.

The Forum has also asked a reduction in the VAT rate on work contracts by builders in order to make purchase of houses and flats in Delhi more affordable.

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Source: The Hindu

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