1% VAT on Real Estate in Haryana: A curtain Raiser

The activities for buying or selling the properties in Haryana were having the clouds of uncertainties about the expected tax reforms for real estate sector. Now, as the monsoon days are over, clouds of uncertainties are also clear. Now, after the recent announcement by the Finance minister of Haryana Capt Abhimanyu, the Real Estate Professionals in Haryana can talk with the property buyers with confident about the taxes. Still, there are some doubts. Mr. M. K. Dhawan, the Authorized Real Estate Consultant, makes it clear at a meeting in New Delhi office.

On September 12, 2016, the Haryana Government issued a notification making it clear to all the stakeholders that 1% VAT would be levied for real estate projects completed until March 31, 2014. It is a welcome development for the project management professionals and the buyers both to get the pending dues settled and to execute the registry of properties. 

The finance minister of Haryana Capt Abhimanyu has already assured the real estate consultants about 1% tax during NAREDCO (National Real Estate Development Council) Convention in New Delhi on August 19, 2016.  

Now, the contractors and real estate developers can assess the pending year-wise dues with 1% VAT. The honorable Finance minister of Haryana also facilitated the Real Estate Project Management Experts to pay 25% of total dues. The balance 75% can be paid in 3 quarterly installments. Going a step ahead to help the Real Estate Sector, Govt. has also constituted a committee of Excise & Taxation Officers and the members of assessing authority.

Deputy Excise & Taxation Commissioner of Gurgaon revealed, “Buyers can’t be forced to pay 4-5% VAT. If the buyers have already paid 4-5% VAT, the difference will be refunded or would be adjusted to property amount.”

NAREDCO President also welcomes the move by saying, “It is the much expected great relief for all including property buyers, Real Estate Brokers in Delhi NCR, Project Management Professionals, Developers. Govt. can expect more revenue generation from real estate sector.”