Experts warn that proposed VAT increase in Kerala's 2013 budget could lead to higher construction material costs, impacting overall property prices in the real estate sector.
Maharashtra High Court orders real estate builders to pay 5% VAT by October 31, but many developers are pressuring buyers to pay due to lack of proper records.
India's real estate sector is facing complexities and ambiguities related to indirect tax, including VAT and service tax on works contracts. The Supreme Court's ruling in the K Raheja Development Corporation case has further complicated taxation, potentially increasing the cost burden on new flat purchasers.