Haryana to tap e-commerce, real estate for taxes

About 15 e-commerce firms have been registered with excise and taxation dept

Making a fast buck on investments in real estate and e-commerce in Haryana may become a tedious task. Haryana Excise and Taxation Minister Kiran Choudhry today said a survey was being done to bring e-commerce players and realty developers, promoters, builders and joint developers under the ambit of tax.

Talking to the media on the sidelines of the launch of an online grievance portal and toll-free service of the excise and taxation department, she said about 15 e-commerce companies have been registered with the department.

She said the Centre was also considering the claim of CST compensation lodged by the state. A part payment of Rs 1,400 crore is likely during this financial year. A total of Rs 3,000 crore she said was due.

It was informed the developers, promoters, builders and joint developers are liable to pay value added tax (VAT) and need to be registered under the Haryana Value Added Tax Act, 2003, with the concerned district sales tax office. Their liability to pay tax is on the taxable turnover relating to transfer of property in goods involved in construction of buildings. In case the plot/property owners collaborate with builders or developers by not charging for a part of that plot or constructed property, this construction amount would also be liable to VAT. They are required to file returns in Form VAT R1 or VAT R6 to avoid interest and penalties.

Besides paying tax as a normal registered dealer, a composition scheme is also available for works contractors under the Haryana VAT Act. A person opting for this scheme is liable to pay vat at prescribed rate,which is four per cent at present, on total turnover of the contract value. The developers, promoters,builders, joint developers can also opt for this scheme and in their case the total turnover liable to vat would not include the amount received from the customers/buyers towards their undivided share in land.

It was made clear that there was no tax on the sale of already built up flats or buildings being sale of immovable property. Tax is levied only on those developers or builders who construct on behalf of the purchasers.

Choudhary said that the department had collected a revenue of Rs 19,703.64 crore in 2012-13 as against Rs 18,077 crore in 2011-12. It achieved all the budgeted targets despite huge slow-down in the economy and non-receipt of the CST compensation from the Central Government. This year also, the department would try to achieve its given targets, she added.

The minister said that the excise revenue alone would increase to about Rs. 3,800 crore as compared to Rs 3,240 crore in 2012-13. This unprecedented increase will be made possible by the new excise policy which has been made after having exhaustive consultations with all the stakeholders.

She said that the goal of the department is to increase revenue collection by ensuring that trade and industry thrives in Haryana. She added, "A happy tax payer is a good tax payer."

The minister was accompanied by Financial Commissioner, Excise and Taxation, Rajan Gupta, Excise and Taxation Commissioner, Anil Malik and other senior officers of the Department.