Real Estate Agency

2200 builders refuse to pay VAT

Many builders have ignored the Govt deadline to register and pay VAT before the October 31,2012 deadline despite Supreme Court rap.About 5257 builders registered themselves to pay VAT for the sales between June 20,2006 to March 31,2010 with the Sales Tax Dept.However,approx 2200 builders from Pune have not paid VAT.Most have showed nil returns.Most builders ask buyers to pay up for their VAT liabilities but social activists say that VAT payment is the responsibility of the person registered with the sales tax dept.A public interest litigation has been filed to prevent builders from extorting VAT from buyers.It will come up for admission on March 8.Builders say that they are entitled to collect VAT from buyers as the sales tax dept has supported their stand of issuing a debit note to flat buyers for the same.

This will be the second time that the dept will raid builders to recover VAT.Many thought that govt will reduce their tax liability hence they did not pay it,though they may have collected it from flat buyers.

It is amazing,that after months of confusion and court battles the govt is yet to specify whether flat buyers are liable for VAT or not.Just one more proof of how the flat buyer is left to fend for himself while builders display their normal high handedness.