Mumbai builders held responsible for non-payment of property tax
No Comments Sub Category:Uncategorized Posted On: Nov 17, 2011
The service tax department in Mumbai traced that builders in the city had collected nearly Rs.50 crores as service tax but never seemed to have paid the same to the government. In concern with this trace, recently the service tax department collected Rs.20 crore from several builders in the city. These builders also promised to pay the balance amount in a week’s time.
The Maharashtra Chamber of Housing and Industry has challenged the validity of the tax implementation in front of the Bombay high court (BHC). Henceforth, BHC had passed an order to the department asking them not to take action for recovery at the present moment and it also directed the builders to deposit the amount in the court.
May it be malls, apartments, offices or industrial buildings; government has mandated the tax payment to all the construction sectors. According to government building norms, every property buyer has to pay only 2.6 percent as a service tax along with the existing land rates. In case a builder is held responsible for collecting service tax from the prospective buyers then the builders will have to pay an add on tax from their pockets.
Source: The Times of India
Tags:
BHC, Bombay High Court, Builders, Government, Government building norms, Land rates, Maharashtra Chamber of Housing and Industry, Mumbai, Property buyer, property tax, Prospective buyers, Service Tax, Service tax department, Tax implementation
