<!-- Facebook Pixel Code --> <script> !function(f,b,e,v,n,t,s) {if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)}; if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0'; n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window, document,'script', 'https://connect.facebook.net/en_US/fbevents.js'); fbq('init', '351567535614080'); fbq('track', 'PageView'); </script> <noscript><img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=351567535614080&ev=PageView&noscript=1" /></noscript> <!-- End Facebook Pixel Code -->

Thursday, November 1, 2012

Do not pay VAT even if you receive legal notice from builder

"The builders will chase you, but customers should stay firm and not pay VAT. If builders file court cases for recovery of VAT, we will offer legal help," Sooryakant Pathak, Grahak Panchayat



1) Maharashtra State may consider easing VAT norms


The state cabinet on Wednesday discussed the possibility of providing relief in collecting value-added tax (VAT) from builders for under-construction flats sold between 2006 and 2010. A demand was raised in the state cabinet to apply the post-April 2010 composition scheme of levying 1% of the agreement value to buildings constructed between 2006 and 2010 instead of 5% of the works contract value being currently sought.

However, the cabinet is yet to take a decision on this. A group of senior cabinet ministers will discuss the matter and take a final decision in a few weeks' time.
Click To Read More

2) Builder-consumer relations to sour over VAT war


“The developers will look to recover the money from customer as they cannot pay tax from their pocket. This will give rise to problems between the developer and customer,” Lalitkumar Jain of CREDAI said.

Some developers will pay the amount from the maintenance deposit of the customer in their possession which will provoke the customer to take on the developer, he said adding in cases where the developer has no deposits of customers to pay for then they will file a legal suit against the customer.
Click to Read More

3) Builders, buyers gear up for legal battle over VAT dues


With the Supreme Court deadline on payment of value-added tax (VAT) expiring on Wednesday, builders tightened the noose around buyers to recover the tax and threatened legal action against them. However, housing activists said buyers should first ascertain whether they are liable to pay.

Housing activists say they are ready for a legal battle. “VAT is a payment to be made by the builders, and buyers are being dragged into it,” said advocate Vinod Sampat.

“Consumers pay for the flat which comprises all the components, including cost of land and raw materials. How can taxes regarding these components be charged from them?” he asked.
Click to Read More

4) Do not pay illegal, excess VAT, warn housing activists


With the builders set to recover value-added tax (VAT) from buyers who purchased under-construction properties between June 20, 2006, and March 31, 2010, housing activists and experts contend that there is no need for panic and payments should be made after checking relevant documents.

“When consumers pay for apartments it covers the land cost as well other expenses like construction materials and labour. How can the consumer bear taxes separately for these,” asked advocate Vinod Sampat.
Click to Read More

5) Why are builders reluctant to pay VAT @5%?

Due to lack of transparency and poor records builders are unable to claim input tax credit available under the tax provisions. But they still expect property buyers to cough up the additional money

For example, it is known that several builders keep actual purchases like sand, iron and steel, stone and cement hidden from account books. While this may have helped them to earn tax-free profits, in the absence of any proof or bill, they will have to pay VAT on total agreement value of the property. If a builder buys 10 trucks of sand and had shown purchase of just 1-2 trucks of sand in his accounts, he cannot claim input tax credit or exemption on 10 trucks.

Same is the case with land purchase price. Several builders have shown the land price less than its actual market value and this is also affecting their tax credit under the VAT rules.
Click to Read More

6) After HC rap, developers rush to meet VAT payment deadline


The developer community had pinned their hopes on the state cabinet's weekly meeting on Wednesday, in which the issue of modifying the decision about VAT and bringing it to 1% for all properties under construction during the June 2006-March 2010 period was to come up for discussion. By late Wednesday afternoon, however, it became clear that the cabinet had decided to leave the position unchanged.

Satish Magar, president of the Confederation of Real Estate Developers Associations of India (Pune metro) told TOI that developers across the state started finalising their VAT liability and remitting it online soon thereafter. "The Supreme Court's order had said developers had time till October 31 to remit VAT dues and we have to follow the order," Magar said.

He added that it was also understandable that the state government left the issue unchanged as there had been consistent media coverage on the issue during the last few months.
Click to Read More

7) Grahak Panchayat Pune Office:


Mr. Vijay Sagar, Advisor, Builder Related Problems,

Grahak Panchayat Pune Office
Above Grahak Peth, Opposite S. P. College, Tilak Road,
2020, Sadashiv Peth, Pune - 411030

Every Monday, 6 pm - 7.30 pm

94 22 50 23 15 / vsagar1963@yahoo.co.nz


View Grahak Peth, Tilak Road, 2020, Sadashiv Peth, Pune - 411030 in a larger map


Related Story:


1) WEDNESDAY, OCTOBER 31, 2012

United Pune Property Buyers Continue Their Fight Against VAT & Builders!

Feel free to call me:


I enjoy talking, sharing my views and giving advice about buying property in Pune real estate market (so, i do not charge anything for the first 3 minutes!) Call 919860044110

If you like to chat, join me, RaviKarandeekarsBlogs on Google Talk.

Yes, my email id is RaviKarandeekar@RaviKarandeekar.com Feel free to write to me. I reply as soon as i can.

Join me on Google +

Subscribe for Free!


To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog

For my blogs on premium real estate projects in Pune, real estate investment, advertising and other related topics, please, visit and join my Ravi Karandeekar's Pune Real Estate Blog Group


No comments:

Post a Comment