NBR Developers
Citiescities-arrow
  • more-arrow-down
    • Please wait while loading other cities loading...

Builders body plea challenging value added tax levy dismissed

  • No. 1 Property Portal in India
  • Over 25 Lakhs Apartments and More
  • Post Free Residential Properties in India
  • Find Property in Bangalore
  • Buy/Sell/Rent Apartments in India
  • Search Latest Residential Property in India
  • Get Free Alerts on Property Requirements
  • Find Agents/Buyers for your Property
mobile-ad
Mumbai-based builders will have to finally pay 5 per cent Value Added Tax (VAT) to the Maharashtra Government. The Bombay High Court has dismissed a petition filed by MCHI-Credai that challenged the levy. Maharashtra Chamber of Housing Industry-Confederation of Real Estate Developers Association of India (MCHI-Credai) is a representative body of builders in the State.
The builders will have to pay the VAT for under-construction properties that were sold between 2006 to 2010 period. A division bench comprising Justice D. Y. Chandrachud and Justice R. G. Ketkar dismissed the petition filed by MCHI-Credai describing it as ‘without merit’. The court also added that deadline of payment of VAT stands on October 31.
Circular MCHI – Credai had filed a petition challenging the levy of VAT and computation of rate of taxation. The final date for payment of VAT was August 31. However, the deadline was extended by the Supreme Court to October 31.
In the case, Maharashtra State Government issued a circular and asked builders to pay five per cent VAT for houses sold during 2006-10. However, another circular issued by the State Government directed a levy of 1 per cent VAT on residential properties sold post 2010 to which the industry body had objected.
Reacting to the judgement, MCHI-Credai Secretary Boman Irani said that the tax burden is likely to be borne by buyers. “It would be an additional burden for buyers who anyway have to pay 11 per cent as their last mile to buy a house. We would also be appealing in whatever way possible for a rationalised rate of one per cent,” he added.
Meanwhile, Om Ahuja, CEO (Residential Services), Jones Lang LaSalle India, said this would impact the cash flow for developers, a majority of whom are already dependent on funding for their business.
“We also foresee a drop in secondary sales of the houses bought during 2006-10 as the buyers would insist on an indemnity bond covering the tax cost whereas the seller would be in state of confusion which could impact sales. This could indirectly lead to an improvement of sale in the primary market,” Ahuja added.
He however said that it will not impact the new sales as the there is no ambiguity regarding the VAT payment for houses bought after 2010.
Source: Thehindubusinessline

Property Listings

Apartments, Flats and Property for Sale in Mumbai

Jun 09, 2017
Sell residential flat :- 2 Bhk sell in new Panvel Area/965 Sqft Built up G+7 Bldg , 4floor, fully furnished room Parking, open space available..
Jun 03, 2017
3.5 big 1st floor 2 parking servant room with attached bathroom Poona..
Jun 02, 2017
Location :- Mauli Desire II opp. Utkarsha vidya mandir daftary road malad east * Bedroom :- 1BHK Apartments * Carpet area : - ,354 sq ft. *..
Jun 02, 2017
Location :- Hawahira Mahal, Mangal Baug, Near Western Express Highway, Pushpa Park, Malad East. * Bedroom :- 1BHK & 2BHK Flats * Carpet..
Jun 02, 2017
Property Detail of MAULI OMKAR - II............................." Location :- Triveni Nagar, Near Mauli Sapphire Bldg, Mallika Hotel,..
Jun 02, 2017
Location :- Ambewadi, Pushpa Park, Beside Western Express Highway, Malad East. * Bedroom :- 1BHK & 2BHK Apartments * Carpet area : - 359..
May 27, 2017
Project Details About the Project Live a plush city life in our sustainable, integrated township at the heart of Mumbai. Spread across 5 acres,..
May 15, 2017
2 x 1 BHK Jodi flats with hall wall sharing - call for more..
May 07, 2017
JK PROPERTY SAI SIDDHANT PALACE 1 BHK/ 2 BHK- ARE AVAILABLE READY POSESSION FLATS {15 MIN} WALKABLE DISTANCE FROM STATION . PER SQ.FT..
spacer

Apartments, Flats and Property for Rent in Mumbai

May 09, 2017
1BHK OF 225 in 24 floors tower, 3 lifts, open parking, 24/7 CCTV and security, only 5 min walking distance from cotton green station and 8 min..
Apr 17, 2017
Very good 2.5 bhk on rent on main Band Stand. full sea..
Mar 27, 2017
FULLY FURNISHED 5BHK FLAT AVAILABLE FOR RENT DIRECTLY FROM..
Jan 04, 2017
2 BHK FURNISHED APARTMENT AVAILABLE AT MALAD EAST, GOREGAON FILMCITY ROAD,MUMBAI. Rent 35,000 / - Security Deposit Rs.1,25.000/-. Interested..
Dec 03, 2016
PG accommd for 4 girls sharing at vakola pipeline santacruz east Mumbai India Rent 7000 call landlady 9768546430..
Sep 02, 2016
2 BHK SPACIOUS FLAT FOR RENT AT KHARGHAR – NAVI MUMBAI. # Location : Kharghar. # Sector : 18, (near to central park, golf course and ..
Aug 12, 2016
# Location : Kharghar , sector - 3 # Sector : 3 # Area : 635 sq ft # Rent : 10000 # Deposit : 40,000 # Parking : open # Balcony : balcony #..
spacer
spacer
spacer
spacer
spacer