Composition Dealer Not to File Annexure With Returns
The Bombay High Court appears to have served a body blow to realtors in Maharasthra.
The HC today dismissed their petition that challenged the applicability of Value Added Tax (VAT) on sale of flats. The builders argued that VAT is not payable on immovable property.
The court, however, upheld the 2006 amendments to Maharashtra Ownership Flat Act that brought "construction" on the tax radar.
The builders will now have to cough up outstanding VAT dues since 2006.
The builders will now challenge the order in the Supreme Court.