Sales Tax Department To Take Action Against Builders
The sales tax department has threatened to take action against many builders after having come across several cases of tax evasion. The Builders have already collected Tax on under-construction property from the property buyers. But only a few have deposited it.
Construction projects in the city and the state are once again under the scanner. According to source, For each flat sold in an under-construction property, builders are liable to pay 1% of the agreement value of the sale as value-added tax (VAT). A builder or firm could face an imprisonment of up to six months and penalized up to 100 times the tax amount for evasion. The tax is not applicable for apartments sold in completed residential or commercial projects.
The department has sought information on sales of flats during the current fiscal. Information has also been sought on agreements entered into with the buyers, and whether the tax has been collected from them and also sought relevant information on ongoing projects from various builders’ associations, including the Maharashtra Chamber of Housing Industry (MCHI).
The sales tax department has threatened to take action against many builders for tax evasion. According to source, department is looking at a projected collection of Rs 800 crore. The department is collecting information on sales of flats and ongoing projects in the city and the state. The department has shot off notices to all such builders.
Source:Times of India
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