Haryana VAT

[Rajendra Pant]

In preview of recent notification of Haryana Excise and Taxation department regarding VAT on developers, please share the clarity on the following

-CST purchase

-Recovery of VAT from space Buyer

Thanks

[YAGAY andSUN]

Dear Rajendra,

Can you please share with us the Notification number you are referring in your query?

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Rajendra Pant]

Thanks for your response.

Notification no. is as follows:

No. S.O.88/H.A. 6/2003/S 60/2014 dated 12th August, 2014

Thanks

[YAGAY andSUN]

Dear Rajendra,

The new/y inserted Rule 49A read with Section 9 the HVAT Act, 2003 read with Rules made thereunder enumerates that

1. Duly registered Developer has an option to pay 1% tax on the gross value of the agreement or the value for the purpose of levy of stamp duty, (whichever is higher) in lieu of payment of normal tax within 15 days of the close of month.
2. No goods would be purchased out side Haryana.
3. If goods are purchased/received/transferred from outside of Haryana then, the development would have to pay the appropriate tax on sale of such goods.
4. No VAT/Input Tax would be available/adjusted and no Tax Invoice would be issued.
5. Non payment of tax within 15 days of the close of month will surely attract penal provisions as prescribed in HVAT Act read with Rules made thereunder.

This is for you kind information.

Regards

YAGAY and SUN

(Management and Indirect Tax Consultants)

[Ganeshan Kalyani]

Hi,

I would add a point to Mr.Rajendra Pant query. The first question as regard CST purchase is already clarified by Mr.Pradeep Sir as usual by his quick reply. As regard second query that - Recovery of VAT from Space Buyer, I would add that VAT befalls on ultimate customer. The builder is suppose to discharge his liability but he may recover it from the buyer and pay to the Exchequer.

regards,

ganeshan

[Ganeshan Kalyani]

Dear Sir,

I would re-submit my reply : As per Notification, Rule 49A is inserted and sub-rule 2 specify certain conditions. The composition developer opting for composition under this scheme shall, (iii) not collect any amount by way of tax under the Act;

The second query is hence cleared.

regards,

ganeshan

[Rajendra Pant]

Dear Mr. Pradeep/Mr.Ganeshan,

Thanks for your inputs

AI Summary

Composition tax for developers: developers may opt for composition in lieu of VAT but cannot collect tax from buyers. Composition tax for registered developers permits payment of a composition amount on agreement or stamp duty value in lieu of normal VAT, requires timely monthly payment subject to penalties, disallows input tax credit and tax invoices, imposes tax on goods sourced from outside the State, and prohibits the developer from collecting tax as a separate amount from the buyer.