Earlier, on 12th August 2014 the Haryana State Government, issued a notification No. S.O. 89/H.A.6/2003/S.60/ 2014, for introducing composition scheme specifically for the builders engaged in the construction activities and inserted Rule 49A for the lump sum payment of VAT by the builders. Although, prior to 12-08-2014, the builders and the work contractors, both were covered under one rule i.e. rule 49.
Nonetheless, on 24th September 2015, the rule 49A has been substituted with newly inserted rule 49A vide Notification 23/H.A.6/2003/S.60/2015 (added with retrospective effect i.e. 01-04-2014). We have made an attempt to provide a deep insight to the recent changes made by the government in the then introduced composition scheme for the builders in Haryana. The provisions of new rule 49A in comparison to the old rule 49A are detailed as below:
Points of difference between the two versions of composition scheme:
New Rule 49A (dt. 24-09-2015)
Old Rule 49A (dt. 12-08-2014)
Procedure for Registration
Not entitled to use declaration Form VAT D-1 for purchasing goods at concessional rate of tax from within the State
No such provision for making concessional purchases.
Availability of interstate purchases
Filing of Return
Quarterly return in Form VAT R-13
No special form of return for the composition developers, i.e. Return as per normal provisions:
Transitional Provisions: A composition developer who has opted for lump sum payment of tax under the lump sum scheme notified on the 12th August, 2014, shall be deemed to have opted for lump sum payment of tax under this scheme. In case the tax deposited under the scheme notified on the 12th August, 2014 is more than the tax liability calculated under this Scheme, the excess tax shall be adjusted against the future tax liability but no adjustment on account of such excess tax shall be allowed if the composition developer opts out of the Scheme.
For details, you may refer the Notification 23/H.A.6/2003/S.60/2015, dated 24-09-2015.