Ravi Karandeekar's Pune Real Estate Market News Blog: 31st October 2012 Deadline

Showing posts with label 31st October 2012 Deadline. Show all posts

Wednesday, October 31, 2012

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

Maharashtra Government to issue an order today?:

As per the news of ExpressIndia, to pacify the united property buyers, today, Maharashtra Government may issue an order for adopting a simple procedure of charging 1 per cent VAT on Agreement Value for the flats purchased between June 20, 2006 to March 31, 2010. The same rate applicable for the flats purchased from 1st April 2010.

Yesterday, on 30th October 2012, Bombay High Court dismissed Maharashtra Chamber of Housing Industry-Confederation of Real Estate Developers Association of India (MCHI-Credai) "petition without merit" and ordered the builders to pay 5 per cent VAT before 31st October 2012.

However, according to TNN, the court held out 'a ray of hope' by saying the order would not come in the way of Maharashtra Government taking a decision applying post-April 2010 scheme to flats purchased between 2006 to 2010.

As of now, according to Vivek Velankar of Sajag Nagrik Manch, nearly 30-50 per cent property buyers have refused to pay VAT. Which, for sure, has affected the recovery of 5 per cent VAT on the flats purchased between 2006 and 2010.

So, the builders are trying their best to convince the Maharashtra Government to adopt a simple procedure of charging 1 per cent VAT on the agreement value - as per the prevailing norms.

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Tuesday, October 30, 2012

Bombay High Court gives no relief to builders on VAT

1) Builders Must Pay VAT by 31st October 2012 - Tomorrow!:

The Bombay High Court today dismissed a bunch of petitions filed by builders against two circulars of the Maharashtra Sales Tax department which levied VAT (Value Added Tax) on all property transactions between June 20, 2006 and March 31, 2010.

The division bench of Justices D Y Chandrachud and R G Ketkar upheld the circulars issued on August 6 and September 26 which said that developers/ builders must register themselves with the Department and pay VAT under the Maharashtra Value Added Tax Rules.
PTI

(As per the circulars, developers were supposed to register themselves by September 15 and pay tax arrears by October 31)

2) Bombay High Court upholds VAT circular on flat purchase

The burden of VAT dues lies squarely on builders:

The Bombay High Court has upheld a tax circular that levied VAT on houses purchased after 2006, reports Ashmit Kumar on CNBC-TV18.

It is a big setback today for the Mumbai-based realtors. The Bombay High Court has upheld a tax circular that seeks to impose a 5% VAT on flats that were purchased which in turn were constructed between 2006 and 2010.

The levy of this VAT was in fact first contested in the Bombay High Court and that tussle went on in the Supreme Court. The Supreme Court ruled in favour of the tax department and set a deadline of October 31 for the realtors to clear tax dues. Importantly, the Bombay High Court observed that it was not in a position to consider the extension of the deadline as it had been very clearly stipulated by the Supreme Court.

However, it did provide some relief to the realtors; it clearly stated that this ruling will not come in the way of realtors approaching the state government for addressing this matter.

The bigger question is who bears the brunt, whether it’s the tax payers, whether it’s the buyers of the flat or whether it’s the realtors; that still looms large.

The tax department has made its position very clear, the burden of this payment, the burden of the tax dues lies squarely on the realtors. The realtors on their part have argued that they have very clear provisions which state that additional costs will have to be borne by the buyers. In the near term with the deadline fast approaching it does appear that this new development is likely to put pressure on their books.

3) Builders’ body plea challenging value-added tax levy dismissed:

The builders will have to pay the VAT for under-construction properties that were sold between 2006 to 2010 period. A division bench comprising Justice D. Y. Chandrachud and Justice R. G. Ketkar dismissed the petition filed by MCHI-Credai describing it as ‘without merit’. The court also added that deadline of payment of VAT stands on October 31. Click to Read More

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Bombay High Court to give verdict on VAT today

Today - Tuesday, 30th October 2012, a day before the deadline for developers to pay the levy ends!

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 taxpayers 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. Click to Read More

Mhada flats do not attract VAT: Tax, legal experts

Buyers who purchased under-construction Mhada flats in the past six years may not have to pay the value added tax (VAT).

Legal and tax consultants have told Mhada that its projects do not attract VAT. The reason: Unlike in private transactions, Mhada does not enter into any sale agreement with its buyers. Mhada issues allotment letter to buyers after it has received the entire flat cost in maximum three installments. Click to Read More

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Monday, October 29, 2012

Flat Owners Who Have Already Paid VAT Join the Fight!

"I am Not Afraid of My Builder"

Recording of Pune Property Buyers' Meet on Sunday, 28th October 2012:

Now, those Pune property buyers who have purchased flats between 2006 and 2010 and have already paid VAT (Value Added Tax) can get justice too!

Those who have paid VAT,
can join those who have refused to pay VAT before 31st October 2012 deadline!!

Now, those who have paid VAT, can proudly say - "I am Not Afraid of My Builder"

Those who have already paid VAT,
didn't know that 31st October is a deadline for builders - not for property buyers.

Those who have already paid VAT,
didn't know that their builder was not legally qualified to recover VAT (Value Added Tax).

Those who have paid VAT,
thought that there is no option but to fulfil the commitment in agreement.

Those who have paid VAT, didn't know where to complain against the builder, claimed Mr. Suryakant Pathak of Grahak Panchayat Pune. Appealing to those who have already paid VAT, Mr. Pathak said, "Now, you have realized that it was illegal recovery of VAT - you too join the fight against VAT"

Addressing to huge crowd of Pune property buyers gathered at Perugate Bhave School on Sunday evening, Mr. Sudhakar Velankar of Grahak Hitwardhini said,"Only a few - less than 10 - builders were registered dealers before 2010! Collection of VAT by unregistered dealer is illegal. So, most of the VAT recovery - by unregistered builder and without giving proper VAT invoice - is illegal"

Mr. Pathak & Mr. Velankar appealed to all property buyers who have already paid VAT to lodge complaint against their builder with Sales Tax Department in this format:

Format of Complaint Against Builder for Recovery of VAT:

To,

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

Sir,

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 :

Complaint:

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

• 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.

Date:

Enclosures: Copy of Notice / Copy of tax invoice.

Complainant

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

Wednesday, October 31, 2012

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

Maharashtra Government to issue an order today?:

Related Stories:

Feel free to call me:

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Tuesday, October 30, 2012

Bombay High Court gives no relief to builders on VAT

1) Builders Must Pay VAT by 31st October 2012 - Tomorrow!:

2) Bombay High Court upholds VAT circular on flat purchase

The burden of VAT dues lies squarely on builders:

3) Builders’ body plea challenging value-added tax levy dismissed:

Related Stories:

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Bombay High Court to give verdict on VAT today

Today - Tuesday, 30th October 2012, a day before the deadline for developers to pay the levy ends!

Mhada flats do not attract VAT: Tax, legal experts

Related Stories:

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Monday, October 29, 2012

Flat Owners Who Have Already Paid VAT Join the Fight!

"I am Not Afraid of My Builder"

Recording of Pune Property Buyers' Meet on Sunday, 28th October 2012:

Format of Complaint Against Builder for Recovery of VAT:

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

Related Stories:

Feel free to call me:

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