Experts' Take
Gaurav Gupta, Director, SG Estates
It is very disappointing that an addition burden of VAT has been levied on builders in addition to the plethora of taxes that realty is already burdened with. Also, the VAT is applicable with retrospective effect. This will lead to increased litigation as buyers who have taken possession and got the sales deed executed will not pay for the proportionate share of VAT, and builder will not pay if he can’t recover from the old buyers. On one hand, the government wants to promote housing and on another, it further increases its cost by burdening with other form of taxes.
Gaurav Gupta, Director, SG Estates
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