posted 9 Oct 2012, 00:46 by CA Kunjan Shah

Mvat on builders, developers

Recent happenings - 28-aug-2012- Supreme Court of India had instructed Builders to pay VAT accrued on real estate transactions in Maharashtra on or before 31 Oct 2012. All the concerned parties and builders have to register with VAT authority by 15th Oct 2012.  The Hoble Court had also said that the VAT has to be paid without any interest or penalty in protest. If the government looses, the VAT so paid will be refunded to the concern registered dealers / builders. The SC has extended the deadline for builders to pay VAT from August 31 to October 31. If they do so, they are not entitled to pay penalty and 15% interest on delayed payment of VAT, according to the SC interim order. The builders must register with the sales tax department by October 15 before paying VAT.

For state government’s FAQ and how to claim set off etc. - refer below attached file named mvat-faq-builder-developers-.pdf  (refer attachment below this page)

Current view as on 1st Sep, 2012 - SC will continue to hear and will give its final decision in due course of time. Meanwhile, if vat is paid off under protest, till 31.10.2012, interest and penalty can be saved.

CA Kunjan (practising CA) BKC,Mumbai,
9 Oct 2012, 00:46