VAT is to be paid by developers in Maharashtra
Much controversy has been created over VAT to be payable by the developers to the government of Maharashtra.
The state sales tax department has issued a circular to developers which states value-added tax (VAT) at the rate of 5 per cent of the value with retrospective effect would be levied on flats, shops and bungalows.
It will be levied to properties sold by the developers between June 20, 2006, and March 31, 2010.
Deputy commissioner of sales tax department of the government has declared that it is not the home buyers, but developers who have to pay the tax. But that now developers are resorting to buyers’ help to protect themselves.
The deputy commissioner further stated that is not applicable to ready possession and people who have bought a flat in re-sale don’t have to pay VAT.
To read more real estate news:
Commercial real estate growing in Navi Mumbai
Bungalows, circular, Deputy commissioner of sales tax department, Flats, Government of Maharashtra, home buyers, retrospective effect, Shops, state sales tax department, VAT to be payable by the developers
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