With little clarity on the matter, the last day for payment of five per cent value-added tax (VAT) by builders for under-construction residential properties they sold between 2006 and 2010 was also the most tumultuous. Developers had come up with their own formulas for recovering the money from buyers. On Tuesday, while upholding the two sales tax department circulars related to VAT, Bombay High Court set aside a clutch of petitions from various builders’ bodies that had sought the quashing of the notices. However, the court also made it clear that the judgement will not affect the appeals made to the government, but the deadline of payment still remained October 31.

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