Increasing difficulties of Indian realtors don’t seem to end. The
Sales Tax Department of Maharashtra mandated builders and developers to pay
retrospective VAT from June 06 to March 10 as Bombay high court turned down
real estate developers’ appeal against the tax.
The government's decision which is expected to hit realty industry hard
will help government to collect Rs. 800 crore. However realtors have decided to
pass on the burden on buyers where as department clearly stated that the onus
to pay the tax liability is on the developer, not on the property buyer. The
builders association in Maharashtra, CREDAI noted that each flat buyer in the
state will have to pay up to 5% additional tax.
“The additional VAT will finally have to be
borne by the customers. I strongly advocate the government takes a second
look at this ruling and take a decision which is equitable and fair to home
buyers,” said Kishor Pate, CMD – Amit Enterprises Housing Ltd & Hon.
Secretary, Credai in a statement today.
To retaliate against the injustice consumers
created FORAM-Flat Owners’ Rights Protection Action Committee in Maharashtra. Source: Firstpost.
No comments:
Post a Comment