Reassessment and revision period extended in Haryana VAT- a disparaging amendment for Haryana Builders"
Recently, Haryana Value Added Tax, 2003 has been amended vide Ordinance issued by the Governor dated 31.7.15 published vide Notification No Leg. 9/2015 dated 3rd August 2015. The concerned amendment is effective with effect from 3rd August 2015. The major amendment increasing time limits for conducting assessment/ reassessment/ revision are laid down as below, for your kind perusal:
Section 16 contains provisions regarding assessment of unregistered dealer’s liability to tax. Earlier in the case of unregistered dealer, the assessing authorities could assess the tax only within a period of three years from the end of the period for which the tax is to be computed. Now, with the amendment that period of three years has been increased to six years.
Thus, with the effect of the amendment, the assessing authority can now assess tax of the unregistered builders, within a period of six years from the end of the period for which the tax is to be assessed. For example, the builders who are not registered in 2009-10 and no assessments has been made under Section 16 of the HVAT Act, till now, and the period of three years has also expired. However, with this amendment, the assessments could now be made for a past period of six years from the end of the period for which the tax is to be assessed.
Further, Section 17 (reassessment) and Section 34 (revision) has also been amended for increasing the time limit within which assessing authority can reassess the tax/revise the order.