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

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:

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

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:

1) WEDNESDAY, OCTOBER 31, 2012

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!

3) THURSDAY, NOVEMBER 01, 2012

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

4) WEDNESDAY, OCTOBER 31, 2012

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!

8) SATURDAY, OCTOBER 27, 2012

31st October Deadline is for Builders!

9) SATURDAY, OCTOBER 27, 2012

VAT - Questions & Answers

10) WEDNESDAY, OCTOBER 24, 2012

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:

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

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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

We refuse to pay VAT!

Builders, 

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

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

Updates:

1) THURSDAY, OCTOBER 18, 2012

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

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