In a potential damage control and seeking to provide relief to builders, developers and real estate customers at large, the Haryana government’s cabinet meeting under the chairmanship of Hon’ble CM has decided to produce optional 1% lumpsum scheme for developers and builders. The matters related to the assessments of several builders are already sub-judice where the assessments and their basis are being fought on writ petition to Hon’ble Punjab & Harayana High Court.
Major Highlights of which are :-
a) The Haryana government on Wednesday approved an optional ‘lumpsum composition scheme’ for developers engaged in construction of building and flats for sale.
b) The cabinet also gave approval for revising thelumpsum rate for work contractors other than developersand revising tax deducted at source (TDS) rate to 5% from 4% under the Haryana VAT Act 2003, according to an official release.
c) The developers opting for the lumpsum scheme would be required to pay lumpsum tax at the rate of 1% on total value of consideration received by them by treating them as non-VAT dealers.
d) They will not be eligible to claim any input tax credit nor entitled to claim any refund or issue any tax invoice.(as in case of composition scheme)
e) Now when the lower tax rate stands revised to five per cent from February 2, 2010, the present tax rate of four per cent for work contractor has been revised to five per cent, the release said.
f) The payment of tax by work contractor has to be made monthly instead of quarterly. The period of 90 days given to a contractor to opt out from the lumpsum scheme has also been revised to 15 days.
Please Note that: – The actual scheme is yet to be notified and currently not effective till notified.
Thanks & Regards,
CA.Ankit Gulgulia (Jain)|B.COM(H), C.A, C.IFRS, C.B.V, LLB*
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CA Ankit Gulgulia (Jain) is Fellow Member of ICAI, Certified IFRS & Business Valuation from ACCA UK and is Practising Chartered Accountant with 8 Years plus of Rich Experience in Audit, GST, Income Tax, DGFT, Valuation, Strategic Advisory, Matters of FEMA, FDI, NCLT, RERA, ROC, SEBI, RBI, M&A, Fundraising, Startups etc as Founder of AGA, Chartered Accountants. AGA Works in wholesome business solutions right from scratch of Company Incorporation to Compliances all under One Roof. He also takes interest in being Virtual Chief Financial Officer (CFO) for Small and Medium Enterprises for Guiding them with All Business, Tax & Strategic Business Decision Making . To Know More, Learn here or contact us at email@example.com