Haryana’s Government Unsolved VAT Puzzle

The Property Show on NDTV  |  July 4, 2016

Amit Gupta, a young professional from Gurgaon is one harassed home buyer and all his problems revolve around 3 simple letters – VAT or (Value-Added Tax). Thousands of home buyers across Haryana are sailing on the same boat, with the spat over payment of VAT becoming a matter of concern for home buyers and developers alike.

“We have already deposited cheques towards VAT. Yet we have again received a new demand saying that we have to deposit 1% more in the name of the assessing authority and issue 3% of the property value in the name of our developer. We are asked to deposit the undated cheques. Why can’t the Haryana government come out with a clear policy on VAT for home buyers? This is pure harassment”.

The confusion over VAT started in 2013, when the Haryana government’s tax department (then under Congress rule), issued an internal memo on the matter. This was followed by two more circulars, none of which managed to come up with a clear formula to calculate VAT. The present BJP regime has done no better. Successive notifications have gone back and forth on the method of valuation of VAT, all of which have failed to provide any clarity, leaving the realty market dazed and confused.

No Clear Formula, Yet Buyers Forced To Pay Up

The Haryana government had come out with a ‘Composition Scheme’ in August 2014. It prescribed a 1% VAT on the total contract value effective from 1st of April 2014 to match the 1% blanket rate of states like Maharashtra & Delhi. However, developers rejected this scheme as it barred them from collecting this tax from buyers. It also imposed an additional tax on developers if goods were bought from outside Haryana.

With no clear method to compute the payable value of the tax, developers are charging anywhere from 4.25% to 5.25 % of an apartment’s value to home buyers. However, developers claim they are depositing funds in an escrow account as fixed deposits with a lien on it, so that they can adjust the required amount and refund it once the government clarifies how VAT should be calculated.

“We are following the law in its letter and spirit. Yes, the VAT amount claimed by every developer is not the same but you cannot blame us for that. We will refund anything in case there is any outstanding, that is our guarantee.” says Sumit Chatterjee, COO of Raheja Developers.

Home Buyers Worry About VAT Collection

The confusion over VAT charges and calculations has only added to the confusion with many buyers worried that developers are siphoning off the amount collected, using it for other purposes. However experts say that there are clear-cut laws to govern this.

“There might be some fears that whatever home buyer is paying to the developer is actually reaching the tax authorities or not. That is the department’s prerogative to look into. There are clear cut laws that people collecting any VAT have to submit it to the Government. There is no ambiguity in that.” advises indirect taxation expert, Ankit Gulgulia Jain

So what options do homebuyers have? Will they have to continue to pay VAT even though the methodologies aren’t clear? Unfortunately, experts say they will have to pay up.

“Normally the term ‘indirect taxes’ mentioned in the builder-buyer agreement helps the developer hedge all his risks under the present tax regime and any future tax demand that may arise. So the buyer in most cases is liable to pay the VAT charges even if it is not explicitly mentioned in the agreement.” says tax expert Kapil Sharma, joint partner of law firm Lakshmikumaran and Sridharan.

The absence of any clarity to compute the VAT charges is certain to adversely affect the realty market of Haryana. It is crucial that the government take this matter up immediately if it wants to revive buyer sentiment in the region.


Reporter: Sukriti, Sub-Editor, NDTV

HaryanaVATVAT in Gurgaon

3,410 thoughts on “Haryana’s Government Unsolved VAT Puzzle”

  17. I’m typically to blogging and i actually recognize your content. The article has actually peaks my interest. I am going to bookmark your web site and maintain checking for brand new information.

    Reply

  23. This is the right blog for anyone who wants to find out about this topic. You realize so much its almost hard to argue with you (not that I actually would want?HaHa). You definitely put a new spin on a topic thats been written about for years. Great stuff, just great!

    Reply
  100. Pingback: albuterol inhaler

  103. Знаете ли вы?
    Первая председательница Верховного суда Татарии молчала по поводу своей службы в НКВД.
    Бразильский дипломат принимал непосредственное участие в создании государства Восточный Тимор.
    Китай реализует в Пакистане собственный План Маршалла.
    Среди клиентов древнеримского афериста был император Марк Аврелий.
    Предок вождя революции участвовал в управлении долгами Российской империи.

    0PB8hX

    Reply

  104. Знаете ли вы?
    «Голова крестьянина» хранилась в доме у немецкой актрисы.
    Советский разведчик-нелегал создал в Европе разведгруппу, успешно проработавшую всю войну.
    Владелец вернул похищенную картину Пикассо почтой, не найдя покупателей.
    Крейсер «Берик» на рейде в Девонпорте
    Ливийский диктатор пытался спасти от казни премьер-министра Пакистана.

    http://0pb8hx.com

    Reply
  111. Pingback: another name for tylenol

  123. Hi there this is kind of of off topic but I was wanting to know if blogs use WYSIWYG editors or if you have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get guidance from someone with experience. Any help would be enormously appreciated!

    Reply

  184. In January matrix year, little xorldz mow down ill. It’s okay, condign a submissive buy viagra, which passed in five days. But the temperature without warning returned by the ending of the month: the thermometer showed 33. The servant was urgently hospitalized with fever and convulsions. A few hours later, three-year-old Yegor stopped breathing – he flatten into a coma. With the commandeer of a ventilator and a tracheostomy, the doctors resumed the trade of the lungs, but oxygen starvation struck the brain. The kid has confounded the total that he managed to learn in three years. The diagnosis is posthypoxic encyphalopathy.

    Reply

  222. Our doctor scheme that Dad was dialect mayhap to advance than Mom in this situation. Stricter, more trying, bequeath not non-acceptance once again when you need to take inconsolable buy viagra. Well, I wanted to around my wife a break.
    I spent a itty-bitty over a month in the intensive take care of piece and two and a half months in the bone marrow move unit. There I became a provider for my son. I’m ready I was competent to alleviate him. I was the contrariwise man in both departments, but my parents were already there. That is, a gentleman’s gentleman in the avert with a lady is no longer a rarity.

    Reply
  227. Pingback: viagra without a doctor prescription usa
  268. Pingback: https://azhydroxychloroquine.com

  271. So obviously, we are keeping it established, but every age something brand-new comes unfashionable, as Mikhailik’s inoculation viagra is severely weakened. Little by crumb we are preparing after high school, conducive to the next year in the key grade.

    Reply

  284. In children born in preference to 32 weeks of gestation, cerebral immaturity on numerous occasions leads to intraventricular hemorrhage (IVH): this occurs in 60-90% of cases. With hemorrhages of the third and fourth degrees, the announcement of cerebrospinal flowing is psychoneurotic, which leads to enlargement of the ventricles of the sagacity and hydrocephalus http://withoutdct.com viagra without doctor prescription. It is beastly IVH and post-hemorrhagic hydrocephalus that often lead to the death of premature babies.

    Reply
  292. Pingback: tadalafil without a doctor prescription
  430. Pingback: buy levitra pills online

  436. Hmm is anyone else encountering problems with the pictures on this blog loading? I’m trying to find out if its a problem on my end or if it’s the blog. Any responses would be greatly appreciated.

    Reply
  437. Pingback: order cialis online us
  445. Pingback: buy viagra canada
  449. Pingback: student essay help
  451. Pingback: ordering cialis online australia
  455. Pingback: dissertation writing services uk
  458. Pingback: urgent custom essays
  459. Pingback: online thesis help
  460. Pingback: buy research paper urgently
  461. Pingback: who will write my paper for me
  469. Pingback: order cialis online canada
  472. Pingback: ordering cialis in canada

  473. Have you ever thought about adding a little bit more than just your articles? I mean, what you say is valuable and all. However think of if you added some great graphics or videos to give your posts more, “pop”! Your content is excellent but with pics and video clips, this website could certainly be one of the most beneficial in its field. Wonderful blog!

    Reply
  477. Pingback: viagra online
  478. Pingback: cialis 5mg
  480. Pingback: cialis generic over the counter
  481. Pingback: cialis pills
  484. Pingback: viagra coupon
  485. Pingback: viagra connect cvs
  486. Pingback: pills like viagra over the counter
  490. Pingback: does viagra make you last longer
  508. Pingback: rx without a doctor prescription
  509. Pingback: online pharmacies of canada
  511. Pingback: canada pharmacy online
  513. Pingback: Levitra with Dapoxetine
  514. Pingback: online pharmacy without a prescription
  517. Pingback: pharmacy online prescription
  525. Pingback: cialis once a day dose
  530. Pingback: hydroxychloroquine countries otc
  536. Pingback: hydroxychloroquine over the counter
  538. Pingback: ivermectin drug insert

  542. Revolutional update of captchas solving package “XRumer 19.0 + XEvil 5.0”:

    Captcha regignizing of Google (ReCaptcha-2 and ReCaptcha-3), Facebook, BitFinex, Microsoft, Mail.Ru, SolveMedia, Hydra,
    and more than 12000 another types of captchas,
    with highest precision (80..100%) and highest speed (100 img per second).
    You can use XEvil 5.0 with any most popular SEO/SMM programms: iMacros, XRumer, SERP Parser, GSA SER, RankerX, ZennoPoster, Scrapebox, Senuke, FaucetCollector and more than 100 of other programms.

    Interested? There are a lot of introducing videos about XEvil in YouTube.

    FREE DEMO AVAILABLE!

    See you later!
    P.S. A Huge Discount -30% for XEvil full version until 15 Jan is AVAILABLE! :)

    XEvil Net

    Reply
  543. Pingback: vidalista 60 mg best price usa
  553. Pingback: cefixime tablets for men price
  571. Pingback: cheap cialis online overnight shipping
  572. Pingback: cialis using paypal in australia
  574. Pingback: buy voucher for cialis daily online
  575. Pingback: status of hydroxychloroquine clinical trials
  576. Pingback: cialis online overnight delivery
  577. Pingback: how much does cialis cost with insurance
  580. Pingback: how to get ciails without a doctor
  582. Pingback: where can u buy cialis
  584. Pingback: when is viagra fully effective
  586. Pingback: buy cialis now
  590. Pingback: cheapest generic cialis australia
  596. Pingback: jyxaixoa
  597. Pingback: find cheap cialis online
  600. Pingback: amoxicillin davis plus
  601. Pingback: real cialis prices
  603. Pingback: tadalafil generic
  604. Pingback: what is cialis 20 mg used for
  606. Pingback: wat doet viagra bij mannen
  608. Pingback: explain why erythromycin and zithromax
  612. Pingback: safe buy cialis
  613. Pingback: max dapoxetine dosage
  620. Pingback: cialis online daily
  625. Pingback: se puede comprar viagra sin receta en farmacias fisicas
  626. Pingback: buy cialis shipping canada
  627. Pingback: essay paper writing service
  628. Pingback: what can i write my research paper on
  629. Pingback: write my essays online essay writing service

  630. Another thing is that while searching for a good on-line electronics shop, look for web stores that are consistently updated, maintaining up-to-date with the most up-to-date products, the very best deals, and helpful information on services. This will make certain you are dealing with a shop which stays on top of the competition and offers you what you need to make intelligent, well-informed electronics buying. Thanks for the significant tips I have learned from your blog.

    Reply
  632. Pingback: canadian generic cialis
  662. Pingback: cialis online daily
  664. Pingback: cialis sale 20mg
  669. Pingback: cialis online daily
  673. Pingback: buy generic augmentin online uk
  675. Pingback: order lasix without presciption
  677. Pingback: azithromycin from mexico
  678. Pingback: stromectol australia
  679. Pingback: albuterol price 5mg
  695. Pingback: fish doxycycline capsules
  696. Pingback: clomid twins rate
  698. Pingback: ebay dapoxetine
  699. Pingback: synthroid coupon
  704. Pingback: college essay writing service

  712. This is the correct blog for anyone who desires to search out out about this topic. You understand a lot its nearly onerous to argue with you (not that I truly would need…HaHa). You definitely put a brand new spin on a subject thats been written about for years. Nice stuff, simply nice!

    Reply

  714. How does lifting weights better testosterone and clomiphene for women expansion hormone? Lifting Weights Increases Testosterone. Men are just less carnal in today’s stylish society than they be experiencing been in the past. The premise is that when you are doc you are taxing your body and causing it to produce a hormonal retort (increase testosterone and human increase hormone) in systematization to carry through the physical call to account at close by . This is why superiority lifting is such a huge way to prolong testosterone Clomid (and growth hormone).

    Reply