The case of Punjab and Haryana High Court in CHD Developers v. State of Haryana & Ors. (TS-147-HC-2015(P&H)-VAT) where Rule 25 of Haryana VAT Rules was challenged on the premise that levy of VAT on value of land was ultra vires the powers of State Legislature.
Earlier in the Haryana VAT Rules 2003, Rule 25 only provides for deduction on account of labour and other service charges in case of works contractor, and no deduction was available to the developer/builders of Haryana on account of cost of land.
However, on 23rd July, vide notification no. 19/ST-1/H.A.6/2003/S.60/2015, HVAT amendment rules have been issued, and rule 25 has been amended thoroughly. These rules have come up with a retrospective effect from 17/05/2010.
Vide these amended rules, it has been made clear that in case of builder/developer, where land is also transferred along with other property in goods, the deduction of 25% (in case books are not maintained, standard deduction is allowed in place of deducing the actual values of service portion) shall be allowed after deducting the cost of land.
The amended rule 25, also provides methods of determining the cost of land, the summary of the same is provided herewith-
Cost of land shall be highest of the following-
For details, you may refer the Notification no. 19/ST-1/H.A.6/2003/S.60/2015.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances; Hope the information will assist you in your Professional endeavors. For query or help, contact: singh@carajput.com or call at 9555555480
CBDT Guidance for AO on Verification of Expenses in Entertainment Sector Following the Comptroller and Auditor General Performance Audit Report… Read More
Loan Against Shares Interest Rates Explained: What Investors Should Know In India’s dynamic financial market, investors often look for flexible… Read More
Why and How to Avoid Useless Expenses This Diwali – A Nature Lover’s Perspective October 2025 Diwali, the festival of… Read More
How to manage repayments effectively on a personal loan of three lakhs Taking a Rs. 3 lakh personal loan can… Read More
Procedure of Member’s Voluntary Winding Up under the Companies Act, 1956 A Members’ Voluntary Winding Up is a mode of… Read More
Top 10 Financial Transactions That Can Trigger Income Tax Scrutiny : The Income Tax Department keeps a close watch on… Read More