VAT increased in Kerala, worries realty sector

Increase in the Value added tax (VAT) may affect the real estate sector adversely. Industry experts stated that increase in VAT would result in materials for construction.
The Kerala Budget 2013 proposes an increase in VAT.

The Kerala Budget 2013 proposes an increase in VAT.

It is true that the budget 2013 has not done any indirect harm to the realty sector. The budget, though did not help the sector, cannot be termed as unfriendly to the real estate sector. However the realty players in the state fear that the proposed increase in VAT would affect the realty sector.

The prices for cement, wood and paint are likely to go up with the proposal to increase VAT. The prices of the above mentioned items are directly related to construction. So in short the prices of the raw materials will have an impact on the property prices too. The property prices will shoot up proportionately.

The budget 2013 has proposed an increase of 1.5% of VAT. This will directly affect the prices of the raw materials used for construction. Continue reading

HC Orders MH Real Estate Builders To Pay 5% VAT

Maharashtra High Court ordered the real estate builders to pay 5% VAT by 31 of Oct. This order solely binds builders to pay the tax but they are found forcing the buyers to pay the tax.

VAT Troubles Real Estate Builders

VAT Troubles Real Estate Builders

Real estate Builders remain unable to claim their tax provisions due to less transparency and poor records. The developers are still expected to pay the entire amount. Continue reading