Developers' body wants time till March to pay VAT
Organisation has sought an extension in time for VAT payment from the state government and demanded that payment delays be exempt from interest and penalty.
Nov 04, 2012
Source : The Times of India

PUNE: Real estate developers' body Marathi Bandhkam Vyavasayik Association (MBVA) has asked for time till March 31, 2013, to complete formalities and payment of the Value Added Tax on residential units sold between June 20, 2006, and March 31, 2010.

MBVA president Rajendra Pate told reporters on Saturday that the organisation has sought an extension in time for VAT payment from the state government and demanded that payment delays be exempt from interest and penalty.

"Developers could not fulfill their obligation of paying VAT by the October 31 deadline. Calculation complexities, remittance software problems and issues with the sales tax department's servers were the main factors that led to the default," Pate said.

He said MBVA is firm on its view that a house is an immovable property and VAT provisions do not extend to any immovable property. He said that the Bombay high court, while deciding on the organisation's petition on VAT, had said the concerned officer should take a call while assessing each case. "We have appealed to the state government to direct the sales tax officials to charge a flat 1% VAT on the deals done during the period under contest," he said.

Pate said MBVA members will make sure they produce proper papers to the customers while demanding VAT and try to avoid any litigation. "VAT, as an indirect tax, must be paid by the customer," Pate said.

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