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Monday, October 15, 2012

We refuse to pay VAT!

We, Pune Property Buyers, 
Will Not Pay You VAT (Value Added Tax)
Before 31st October 2012, 
on the Properties We Bought from You Between 2006 and 2010!

Pune Property Buyers Unite to Fight Against Maharashtra Value Added Tax (MVAT):

Property buyers at an awareness programme about paying Maharashtra Value Added Tax (MVAT) to builders before October 31 deadline
Property buyers at an awareness programme about paying Maharashtra Value Added Tax (MVAT) to builders before October 31 deadline

On Sunday morning, Pune property buyers, harassed & threatened by the builders to pay exorbitant amount of VAT before 31st October 2012, assembled in huge numbers at Perugate Bhave School. When they came, all were frightened. But, at the end of the meeting all were ready to fight the builders & Maharashtra Government.

Under the leadership of Mr. Suryakant Pathak of Akhil Bharatiya Grahak Panchayat, Vivek Velankar of Sajag Nagarik Manch and Sudhakar Velankar of Grahak Hitwardhini, Pune property buyers declared war against the builders & Maharashtra Government, and announced that, "We will not pay VAT (Value Added Tax)".

All these property buyers have purchased properties between 2006 and 2010. Their builders had sent them demand letters for paying VAT before 31st October 2012. Amount of VAT varied from builder to builder. From 5 per cent to 1 per cent of the agreement cost!

Since every property buyer has signed the agreement and accepted the responsibility to pay taxes, now, no one is in a position to refuse.

At the same time, today, no one is ready to pay exorbitantly high VAT for their properties bought between 2006 and 2010.

Particularly, when for the properties purchased after 2010, Maharashtra Value Added Tax (MVAT) is only 1 per cent of the agreement cost!

The Public Interest Litigation (PIL) (142/2012) by Mr. Sudhakar Velankar of Grahak Hitwardhini in Bombay High Court, gave strength & confidence to the worried property buyers. The PIL, which is scheduled for hearing on 17th October 2012, challenges the legality of the VAT, method of calculation of VAT, and requests for a stay on recovery by the builders.

Mr. Suryakant Pathak of Akhil Bharatiya Grahak Panchayat, assured all frightened property buyers that they will win this war if they stand united. Mr. Pathak appealed to all property buyers not to pay VAT and join the collective action program - like Morcha - to build pressure on Maharashtra Government.

"For the property buyers, VAT is an opportunity! Golden opportunity to force the builder to fulfill the promises mentioned in the agreement!! Like formation of the society and conveyance deed. Best opportunity to demand Hisab Kitab of MSEB to Maintenance charges!!” Mr. Vivek Velankar of Sajag Nagarik Manch said.

To join the fight against VAT, Pune property buyers can visit Grahak Peth, Tilak Road, 2020, Sadashiv Peth, Pune - 411030. Between 6 to 8 pm. Call: Mr. Sagar Vijay - 9422502315 & Sudhakar Velankar: 9850758305

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



How to Refuse to Pay VAT

Related Stories:

1) Don't pay VAT: Consumer groups

1) Awareness programme for VAT queries in Pune

2) PIL on VAT collection from property buyers filed

3) Fight VAT on flats unitedly, say consumer groups

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  1. keep them coming Ravi. We need to make all property buyers aware about this! United we stand.
    I had one question though....the notices which the Builder is sending to ask for payment of the VAT, do they hold any legal value? I mean the builder sends it on his company letter head. Also these notices only demand money, but does not provide supporting documents like how they arrived at this value, how much previous tax have they filled, no calculations provided!!!

  2. I wonder, these property buyers never question the builders about their inflated rates, poor quality of project, delayed possession, incomplete amenities.

  3. Good post Ravi. This once again confirms that you indeed write for property buyers.

    "I wonder, these property buyers never question the builders about their inflated rates, poor quality of project, delayed possession, incomplete amenities".

    Amolw! .....property buyers question, they worry, they suffer, they many times get pained, they repent....Yes! they question, but never they get responsible answers. Property buyers are helpless. Ironically there is no any regulatory mechanism in place in real estate. Builders-Bureaucrats-Politicians all together make buyer's life miserable. With no justice, we can only discuss, complain, repent, write comments on blogs. In this respect, the steps taken by property buyers, under the leadership of Mr. Suryakant Pathak of Akhil Bharatiya Grahak Panchayat, Vivek Velankar of Sajag Nagarik Manch and Sudhakar Velankar of Grahak Hitwardhini, is indeed a positive sign. There should be mass protest to threaten the bad systems like the stir created by Anna Hazare last year. In every sphere of life, there is corruption, illegal practices. It is too much now, saturation limit has already been reached. It is a dire need each and every common man should awaken and become aggressive to fight for justice. A time has come the truth will win against evil.

  4. Lovely pic ....good to see so many people united...Jai Hoo....

  5. If anyone has information on first hearing of PIL scheduled on 17th October, please update.

  6. any information on first hearing of PIL scheduled on 17th October ???
    as my builder demanding 2.73% on agreement value should i pay or refuse it ...

  7. This VAT is introduced by Ajit Pawar's instance. This corrupt politician is looting the common man and shielding the builders. He has wasted all the taxpayers money on Dams which are never meant to be completed. And now he wants to fill the govt. coffer from common mans pocket. Dont pay VAT and see to it that Congress & NCP pay the price in coming election.

  8. Maharashtra has added VAT on proprieties bought between 2006-2009. useful infromation
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  10. All,
    We all are good to show unity as all of us are victim of such VAT that was supposed to be paid by the Builder. Since they are not paying or not willing to pay, so asking us to pay. But we should fight to show the govt and builders against such white coller corruption. Can we not approach Annaji or Kejariwal to help us and get this in front of our country.

  11. Our builder has not initiated any action, meaning he has not sent any letters to any of the flat owners yet (today is 22nd Oct) .. Do you suggest we 'remind' / 'ask' him about it. ? or just stay quite? We are just afraid that he might show us the amount on day before 31st oct ... and we might not have time to react..

  12. Avoodi,
    dnt remind him....VAT has to pay by Developer only bt they passing to us.
    wat i heard from our society is that we are in awaiting of HC verdict that is on 29th Oct this month,
    unofficially HC may order to collect 1% VAT and time may extent to 31 Dec 2012.
    so just wait till 29 and if order not come on 29 oct then dnt pay over 1% Vat.
    till then take account details from builder so u can transfer online easily by 31 oct.

  13. Ravi, Thanks for the detailed and informative article. However, do you/anybody else has a confirmed update on the PIL hearing of 17th Oct.

  14. In any case, if there is no specific mention of VAT in the agreement, are we bound to pay VAT. In Agreement its mentioned "any tax levied by Govt, Corporation".

  15. The Bombay high court is scheduled to deliver its verdict on the Maharashtra government's decision to charge value-added tax (VAT) on under-construction buildings between 2006 and 2010 on Tuesday, a day before the deadline for developers to pay the levy ends.
    "Ultimately, the burden will be on the middle-class tax payers or buyer of flats," said a division bench of Justice D Y Chandrachud and Justice Rajesh Ketkar. The bench will start hearing the case at 9.30am, one-and-a-half hours before the court opens at 11am.

  16. This comment has been removed by the author.

  17. wow .... no comments after yesterday's verdict ?? HC just closed door on any possible exemption / extension looks like..
    now it will be a fight between builders and buys as feared earlier .. too bad

  18. Hi guys, what was the final decision by HC? Do we have to pay VAT?
    Too much confusion. I am right now out of India and in total confusion.

    Please guide.