Survey to find out portals, developers paying tax

CHANDIGARH: Haryana government today said it is carrying out a survey to ascertain whether web-portals engaged in selling goods and commodities through online channel and real estate developers in the state are paying tax.

"Through survey we are trying to collect information about e-commerce websites and real estate developers are paying tax or not," said an official of Haryana Excise and Taxation department said here.

As far as e-commerce websites are concerned, department has come to know that the volume of business of web-portals are increasing but the tax collection has not grown correspondingly, he said.

"We are trying to see whether web-portals are depositing tax on items or commodities sold to online customers," he said adding that the department would seek details from the web-portals in this regard.

So far, 15 e-commerce portals are registered with the department.

The real estate developers including promoters, builders and joint developers, are liable to pay VAT and they need to be registered under the Haryana Value Added Tax Act, 2003 with the concerned district sales tax office.

The tax liability of developers is on the taxable turnover relating to transfer of property in goods involved in construction of buildings.

In case plot or 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 in Form VAT R1 or VAT R6 to avoid interest and penalties, official said.

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 of four per cent on total turnover of the contract value.

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 purchasers, official said.

Meanwhile, Haryana Excise and Taxation minister said the Central Government is actively considering the claim of CST compensation lodged by the state government.

Due to the active pursuance of the Haryana Government, a substantial amount is likely to be received during this financial year on this account.