Haryana plans to tax realtors, e-commerce companies

Realtors and e-commerce companies operating in Haryana are likely to be brought under the tax ambit in the state, a minister said here Tuesday.

A survey is being conducted to bring e-commerce firm as well as developers, promoters, builders and joint developers under the ambit of tax and bout 15 e-commerce companies have already been registered with the excise and taxation department, Excise and Taxation Minister Kiran Choudhry told media persons here.

"Developers, promoters, builders and joint developers are liable to pay 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," she said.

"In case the plot/property owners collaborate with builders or developers by not charging for a part of that plot or constructed property, then this construction amount is also liable to VAT. They are required to file returns to avoid interest and penalties," Choudhary said.

She said that realtors will have the option to go in for a composite scheme in which the prescribed tax rate would be four percent.

"There would be 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," she said.

Choudhary said that the excise and taxation 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.

Haryana has seen a boom in real estate and industry in the last three decades, especially in the national capital region (NCR) near Delhi.