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Monday, December 31, 2012

What about VAT?

Have you paid Maharashtra Value Added Tax (MVAT) on Property Bought between June 20, 2006 and March 31, 2010?

Is builder harassing you to pay VAT on Property Bought between June 20, 2006 and March 31, 2010?

Suryakant Pathak, MLA Girish Bapat, Advocate M. P. Bendre, Advocate Govind Patwardhan and Sudhakar Velankar
Suryakant Pathak, MLA Girish Bapat, Advocate M. P. Bendre, Advocate Govind Patwardhan and Sudhakar Velankar

Only women are not abused and raped.
Flat buyers too receive the same treatment. From the builders.

Particularly those home buyers who have purchased flats between June 20, 2006 and March 31. 2010.

From the day, deadline of October 31, 2012 was announced, the builders started demanding VAT - Maharashtra Value Added Tax (MVAT). Even today, builders are harassing these flat buyers by sending demand letters about VAT payments. Asking to pay from 1 to 5 per cent of the agreement value of flat. By demanding penalty & interest, builders are threatening for non payment.

Addressing the crowd of brave flat owners who have refused to pay VAT and are fighting against the builders, Mr. Sudhakar Velankar of Grahak Hitwardhini (98 50 75 83 05) said, "Unity! We can protect ourselves from builders - only if - we are united. We can fight against the builder - only if - all flat buyers in the society are united.

There may be a few flat buyers in your society who didn't have guts to fight against builder. There may be a few flat buyers in your society who couldn't stand against threats & harassment. There may be a few flat buyers in your society who didn't know that the builder's demand was illegal. There may be a few flat buyers in your society who innocently obey builder's every order.

Whatever may be the reason, we can't dismiss them. Because, we are neighbors. As a resident of the same society - our destiny is the same. We are connected. They may not be as strong as we are, but all are the members of the same society. We have to invite them to join us!"

Looking at the brave flat buyers, gathered in Perugate Bhave School, on Sunday evening, Mr Velankar asked, "Why we have to help those - weak flat buyers - black sheep in our society - who have already paid VAT to the builder?

Because, it's our duty to help them recover their VAT!

Yes! Demanding VAT without proper Tax Invoice is a crime. And letting someone commit a crime is becoming an accessory to the crime.

Builder has demanded VAT without proper Tax Invoice and your naive neighbor has paid as per builder's demand letter - the crime has been committed in front of your eyes - now, it's your duty to save your neighbor and stop the builder!"

Referring to the complaint letter, Mr. Velankar said, "Whenever builder sends you a demand letter and asks you to pay VAT - without sending proper Tax Invoice - what do you do?

You send complaint letter to Sales Tax Commissioner against the builder for illegal demand of VAT. Right?

The same way, you have to tell your neighbor to write to Sales Tax Commissioner for the illegal recovery of VAT.

Writing to Sales Tax Commissioner about VAT you have paid to the builder - will help the Sales Tax Commissioner to cross check - whether your builder deposits the same amount to the government or not.

Because, as per the law, the builder must deposit the exact amount which he has collected from the flat buyer.

Builder not depositing exact amount collected from the flat buyer is a crime.

And you know well how your builder is!

By helping your neighbor to write to Sales Tax Commissioner, you are confirming that the government has received exact money your neighbor has paid to the builder - so, eventually, you are confirming that your neighbor will be able to demand refund from the government!"

Next step is to demand the exact VAT assessment of your flat! Advocate Govind Patwardhan said.

Tell your neighbor to write to Sales Tax Commissioner for the exact VAT amount liable to your flat after the assessment and demand for the refund if you have paid more.

Mostly, your neighbor must have paid more because the VAT has no relation with the agreement cost. VAT is on the input costs - steel, cement and other materials used in the construction of your flat! Advocate explained.

Point is unity. We all must stand united. Only united flat buyers can fight & win against builders. So, when builder sends only demand letter - without Tax Invoice - you - brave property buyers who have refused to pay VAT - complain to the Sales Tax Commissioner against the builder for illegal demand.

And those who have paid VAT as per demand letter also inform the Sales Tax Commissioner about builder's illegal recovery. In this scenario, who will win? Builders or property buyers? Certainly, property buyers! Mr. Velankar said.

Can we stop builder from - harassing & threatening flat buyers - from demanding VAT?

Mr. Velankar asked.

It looks possible! In the next couple of days, if we could find a way, we may go to court against the builders to prevent them from demanding VAT. Mr. Velankar announced.

Updating about the PIL filed in Bombay High Court, Mr. Velankar said that the next hearing is on the 3rd of January 2013. And wished happy new year to all brave flat buyers who have refused to pay VAT. MLA Girish Bapat, Advocate M. P. Bendre, Chairman, Akhil Bhartiya Grahak Panchayat Pune, Suryakant Pathak, and Vijay Sagar also addressed the meeting.

Here is a format for Complaint Against Builder for Recovery or Demand of VAT:


The Additional Commissioner,
Sales Tax, Pune,
Vikrikar Bhavan, Yerawada,
Pune 411 006.


Subject : Complaint Against The Builder For Illegal Recovery of the Value Added Tax.

1) Name, Address &
Telephone Nos. of The Complainant:
2) The details of Flat on which VAT is Demanded/recovered:

3) Name & Address of the Builder:

4) Date of Agreement to Sale:

5) Date of Possession of the Flat:

6) Price of the Flat:

7) Other Charges:

8) Amount demanded as VAT:


1. The Builder demanded / recovered the VAT on the transactions done prior to his date of registration.

2. The Builder demanded / recovered tax. amount without issuing tax invoice. /
The Builder has issued incorrect tax invoice.

3. The Builder demanded /recovered VAT in excess of prescribed rate under the Act.

4. The Builder demanded / recovered VAT and asked to pay it in different name than his own name.


• Details of Payment

• Ch. No. & Date

• Bank -Branch

• Amount

• Status of Cheque - The Cheque stands en-cashed / is not en-cashed.

As per my knowledge the Builder has committed offence under the MVAT Act 2002 and it is punishable under Sec. 29 of the Act.

I, therefore demand appropriate action on my complaint against the builder. I solemnly declare that the information given above is true and correct to the best of my knowledge and belief.


Enclosures: Copy of Notice / Copy of tax invoice


Your Signature and Name

Send the Above Complaint Against Builder for Recovery of VAT to:

1) Mumbai - Shri S K Nikam 23760565 - nikam.sk@mahavat.gov.in

2) Mumbai - Shri D S Shinde 23760562 - shinde.ds@mahavat.gov.in

3) Thane - Shri Y A Lokare - 25496231 / 9892824521 - lokare.ya@mahavat.gov.in

4) Pune - Shri R G Bankhele - 26609218 / 9822006188 - bankhele.rg@gmail.com

5) Kolhapur - Smt S V Miskin - 2663932 / 42 - miskin.sv@mahavat.gov.in

6) Nashik - Smt S D Thorat - 2335173 / 9421689354 - thorat.sd@mahavat.gov.in

7) Nagpur - Shri S V Lahane -982399375 - lahane.sv@mahavat.gov.in

8) Aurangabad - Shri R V Darake - 9850298652 - darake.rv@gmail.com

Contact for more information:

Ms. Seema Bhakare - seema.bhakare@gmail.com - 98603 68123

Ms. Veena Dixit - d_veenadixit@yahoo.com - 98196 60991

Mr. Vijay Sagar, Advisor, Builder Related Problems,
94 22 50 23 15 / vsagar1963@yahoo.co.nz

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

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

Related Stories:


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

2) MONDAY, NOVEMBER 05, 2012

Please, Refuse to Pay VAT - An appeal from Pune Builders!


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


1 per cent VAT on Flats bought between June 20, 2006 and March 31, 2010?

5) TUESDAY, OCTOBER 30, 2012

Bombay High Court gives no relief to builders on VAT

6) TUESDAY, OCTOBER 30, 2012

Bombay High Court to give verdict on VAT today

7) MONDAY, OCTOBER 29, 2012

Flat Owners Who Have Already Paid VAT Join the Fight!


31st October Deadline is for Builders!


VAT - Questions & Answers


Pune Flat Owners United Against VAT

11) THURSDAY, OCTOBER 18, 2012

How to Refuse to Pay VAT

12) MONDAY, OCTOBER 15, 2012

We refuse to pay VAT!

Feel free to call me:

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  1. This comment has been removed by the author.

  2. Dear sir,
    Can you please update about what happened to the hearing of PIL filed in Bombay High Court on 3rd Jan 2013?

  3. Hi Ravi,
    Could you please update me about the property rates prevailing in Sholapur. Could you tell me if whether it is the correct time to invest in this property or do I wait for sometime.

  4. Sir, We need to know your view on Meenakshi Puram site. I believe that few days back you were thr on site to understand the issue. Now we got a stay order from Honorable Consumer court on this, would like to know your view on this. You can write this on https://www.facebook.com/PeopleAgainstMeenakshiPuramcBuilding Hope to listen from your side.

  5. I have been watching your Pune real estate blog.
    I need your help in solving my problem.

    I booked flat in Wakad near Bhumkar chowk. Builder is 5 Star construction.
    They have joint venture with Mahananda Pawar who had all land deal etc with lad owners.

    I have checked the the file of this project in PCMC thro' RTI act as well. I can see that papers are there. But I don't find their join venture details etc.

    Now I told builder to give me all the xerox copies of document to me so that I get search report done from my advocate. But builder is saying that they don't give any document before agreement.
    Once agreement is done , they can give me all documents. While I told builder that unless search report is done from my side , I will not go for agreement and registration. And also I will not pay further amount.

    The location and site and plans are in fact very good and has feature value.

    So plz guide me how to proceed further on this. The aim is to check thro'ly if the site/construction is legal or not.

    Chetan Ingle

    1. 1) You are right, Chetan. Don't sign agreement without search report.

      2) Always write to the builder. Written communication is a proof. Oral communication has no value. So, after every conversation send written minutes of the meeting.

      3) You are paymaster. You decide the rules of transaction. Not the builder.

  6. Dear Mr. Karandikar,
    we are also curious to know what are the latest updates on VAT (2006-2010)topic. We have twice refused to builder for PAying VAT and do not know exactly what his next action will be.
    Thanks in advance, waiting for your reply.

    1. Dear Prashant, for updates and motivation, please, get in touch with -
      Grahak Margadarshan Kendra
      (Free Consumer Guidance Center)
      Akhil Bhartiya Grahak Panchayat Pune

      Vedshastrotejak Sabha,
      opposite Hotel Kalpana and Hotel Vishwa,
      near Sarasbaug, Pune 411 030.

      Monday & Wednesday
      1730 to 1930


      Vilas Lele - 9823132172

      Seema Bhakre - 9860368123

      Vijay Sagar - 9422502315

      Thaksen Pore - 9850525276

      Veena Dixit - 9819660991

      Srikant Joshi - 9850059020

  7. This comment has been removed by the author.

  8. Thanks Ravi. Very useful. Any updates on pil?

    The below news was useful although it was for bore.