Thursday, October 18, 2012

How to Refuse to Pay VAT

Grahak Panchayat Pune Shows How to Reply to Your Builder's Demand Letter about Paying VAT Before 31st October 2012:


Suryakant Pathak - President - Akhil Bharatiya Grahak Panchayat - at an awareness programme about paying Maharashtra Value Added Tax (MVAT) to builders before October 31 deadline.
Suryakant Pathak - Akhil Bharatiya Grahak Panchayat - at an awareness programme about paying Maharashtra Value Added Tax (MVAT) to builders before October 31 deadline.

Mr. Vijay Sagar, Advisor, Grahak Panchayat, Builder Related Problems, says that it's not necessary to reply to builder's demand letter for paying Maharashtra Value Added Tax (MVAT) on properties bought between 2006 and 2010. You can simply ignore it.

However, to defend yourself from builder's pressure & harassment to pay before 31st October, you may want to reply and wonder what to say.

Have a look at the draft reply prepared by Grahak Panchayat. Besides, solving the issue of VAT, Grahak Panchayat shows how you can turn this problem into an opportunity. An opportunity to force the builder to fulfil his promises and duties. Like formation of society, conveyance deed, and demanding Hisab Kitab of MSEB to Maintenance Charges!






Builder Related Problem?


Meet 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

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We refuse to pay VAT!

2) WEDNESDAY, OCTOBER 17, 2012

Pune Municipal Corporation,
Don't Sanction Building Plans Without Water Supply

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22 comments:

  1. Hi Ravi, I received this in an email from a friend and wanted to send it to you to upload on the blog or for your information. You beat me to it.
    Take care,
    Natasha
    PS Was reading in yesterday's papers how housing is being pushed beyond the means of the regular public. I do hope some revised policy or reforms give them hope to own their own home.

    ReplyDelete
    Replies
    1. Very sweet of you, Natasha. Keep on sharing. Thanks to Vijay Sagar & Grahak Panchayat!

      Yes, let us hope so.

      Delete
  2. Thank you Ravi for providing this information.

    ReplyDelete
    Replies
    1. Dear Abhi, thank to Vijay Sagar - Grahak Panchayat!

      Delete
    2. Dear Ravi sir,
      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 ...
      thank u !!!!!!!!!

      Delete
    3. 2.73 % ! Certainly, refuse!!

      Sorry, Arvind. I don't have any news about today's hearing.

      Delete
  3. Your Blog is helpful to home buyers. Keep up the Good Work. I must share the link of your blog post with my friends.

    ReplyDelete
  4. I had bought my house (when under construction) on Sep 2005. The the final disbursement by the bank was in July 2006. The builder had demanded VAT on this amount. Am I liable to pay VAT due to the flat being registered in 2005 ?

    ReplyDelete
  5. Hello Sir,
    I am staying in Kalpataru Estate, Pimple Gurav. Today we received a letter from builder,demanding VAT 2.83%. What should we do?

    ReplyDelete
  6. Hello Ravi,
    Reading your blogs one would surely become Property Guru!!!

    really appreciate your inevitable ground work & thought process behind your blogs.

    Thanks
    Vikram (An home seeker in Pune)

    ReplyDelete
  7. Hi Ravi
    this blog really helps and the pressure we have from builders can be released, thanks. I have one query, I have purchased the flat in resale deal, where I am not the first buyer and the original buyer got the possesion in 2008 and I purchased the same in 2009 from him, now my query is , am I suppose to pay VAT?

    Need your advise and help ...

    Regards
    Ravi

    ReplyDelete
  8. Hi Ravi
    I recently purchased a flat (Aug 2012) and the about 70% of amount has been paid to builder including VAT amount.The builder took 1% of the agreement cost as VAT. I have not paid Service tax yet.As per the above letter,the cost of formation society is only Rs 500.It means that I can ask for returning of remaining money with 18% interest.Please correct me if I am wrong.
    Also,I have paid 2 lakhs for MSEB,parking and ameneties charges.as per above,the MSEB charges is max 10000 and parking should not be charged.Should I write a letter asking justification and breakup of the amount?Please advise asap.

    ReplyDelete
  9. Rajesh Vijay Deshlahra

    Dear Raviji,
    I also received one Notice from builder regarding the payment of VAT for a flat at PUNE. But I sold that flat to other person on 30/03/2010. At the time of Purchase builder never told us about this VAT. And now they are demanding from us, as I already sold the said flat to other person, How I bear this tax, Please guide us in the matter.

    ReplyDelete
  10. Can anyone please publish example calculations of VAT by all 4 methods ?

    ReplyDelete
  11. Sir,

    I had purchased a ready possession flat in 2007 from Builder. I did the agreement in month of Oct & I went to stay in the flat by Dec.

    While, Builder had "applied" for completion certificate in March 07, He actually got the completion certificate for said flat/building in March 08.

    Under this circumstances am I liable to pay VAT ?

    ReplyDelete
  12. Hi Ravi,
    Let me tell you.. I was regular reader of your blog when i wanted to buy the property in early 2010. Again landed up on your blog when thought of checking latest news related to VAT.

    Mittal Bulider (SUN satellite, Orbit, Planet etc) has executed many agreements during 2006-10 which attract VAT. But he has specifically mentioned the clause as
    whenever government comes with VAT or any taxes will be borne by customer..In such cases what will be our standa?

    ReplyDelete
  13. Hello Ravi Sir,
    I own an apartment in Aditya Garden Society (Warje/ New Kothrud) and have received mutiple emails from my builder about the same issue as discussed above. Recently I recevied an email with a very hard-tone and almost sounded like a threatening (That If I fail to pay the VAT amount they are going to take all sorts of actions including Legal route, Informing the Finance co., The govt. department etc.). This email has really made me worried now. I am currently out of India and have very less support from Pune area. Pls. advise me what should be my next course of action.

    Regards,

    Vishal

    ReplyDelete
    Replies
    1. Dear Vishal,

      1) Please, contact -
      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

      2) Visit - United Pune Property Buyers Continue Their Fight Against VAT & Builders!

      3) Talk to other flat owners. Collective action is necessary.

      Delete
  14. Thank you Sir for the quick response. I will do accordingly.

    Regards,
    Vishal

    ReplyDelete