August 14, 2012 2:11:39 am
The Confederation of Real Estate Developers Association of India (Credai),Pune Metro,has opposed state governments order asking them to pay value added tax (VAT) on flats that they sold between June 2006 and March 2010. The real-estate body has asked for extending the deadline of August 31 to pay the retrospective tax.
Credai director-general D K Abhyankar said that after April 1,2010 the developers have been paying 1 per cent VAT on property sale under the composite scheme. However,he said that Credai has already approached Supreme Court and the petition related to the payment of VAT is pending before the court. A petition has already been filed in the apex court,but the government has asked us to clear VAT by August 30. We have requested the finance department to extend the deadline. We have urged that the deadline be extended by at least three months as the order has been issued in hurry, he said.
Abhyankar said total VAT that would be paid by developers has not been worked out yet,but the number of flats that were sold during the period in the city is over 1.5 lakh.
Credai said the real-estate industry is already battling issues of delay in clearances in real-estate projects and the new order has only come as a dampener. Abhyankar said the actual rate that will be applicable for the payment of VAT will be worked out by the industry body in consultation with the government.
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