Wednesday, October 31, 2012

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

An Agreement to Pay:


5 per cent VAT on flats purchased between June 20, 2006 and March 31, 2010, opened the debate on what is exactly an Agreement to Sell. Which every property buyer signs and registers when he books the underconstruction flat with builder.

Builders claimed that Agreement to Sell is simply an agreement for sale of immovable property. So it doesn't attract VAT.

However, Maharashtra Government considers Agreement to Sell between flat buyer and builder is "Works Contract"- a composite contract for supply of goods & services - and attracts VAT.

But all property buyers know that most of the builders do not offer all services and all goods in their Agreement to Sell.

Mostly, no property buyers can establish their interest in the common areas and facilities in the project - as per the Apartment Ownership Act, 1970. In most of the projects, these common open spaces and amenities remain in the builder's control.

So, in reality, the Agreement to Sell is nothing more than Agreement to Pay.

An agreement signed by the property buyer to pay whenever and whatever money builder demands! Including 5 per cent VAT!!

An Agreement to Surrender:


In reality, when we sign an Agreement to Sell, we surrender ourselves to the builder.

We accept the builders illegal & exorbitant demands. Demands to pay for parking, which as per law, the builder cannot sell. We accept to pay exorbitant charges for the electricity supply, society formation, legal fees, maintenance & all.

Obviously, the builder starts considering that the property buyers are his slaves. The slaves who have no option but to live at his mercy.

An Agreement to Suffer:


After the possession, when the builder does not fulfill his promises advertised in the media & committed in the agreement, the property buyers realize that the Agreement to Sell they have signed is in fact an agreement to suffer. Some blame their destiny and suffer. But many property buyers go to Grahak Panchayat. Consult Mr. Vijay Sagar, Advisor, Builder Related Problems. Under his guidance fight for their rights and win.

Because of the issue of 5 per cent VAT on the flats bought between June 20, 2006 and March 31, 2010, Pune property buyers got an opportunity to unite. As a strategy, all consumer forums appealed to all united Pune property buyers to convert this VAT problem into an opportunity.

An opportunity to force the builder to complete the works.
An opportunity to force the builder to complete his legal duties of society formation & conveyance.
An opportunity to ask the accounts of maintenance, legal, MSEB & other charges.
An opportunity to demand refund with interest of exorbitant charges collected by the builder under different heads.
An opportunity to demand compensation for delayed possession.

Now, the united Pune property buyers are fighting not only for VAT. Now, the united Pune property buyers are fighting for their rights as a consumer.

For these united Pune property buyers, Mr. Vijay Sagar of Grahak Panchayat has prepared a document called - "Notice to Builder for Incomplete Work & Demand for Compensation". Which is a simple format for the all issues property buyers face.

If you are one of those Pune property buyers who is not afraid of his builder and has guts to be assertive and fight for his rights, you will find this document very useful. Have a look, and if you decide to join the fight, feel free to contact Mr. Vijay Sagar for guidance. His contact details are:

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

Notice to Builder for Incomplete Work & Demand for Compensation:




From

Flat purchasers / Society

Address -

To
Developers,

Address

Rep. Through its partners –

1.

2.

3.

Reference – Our earlier meetings and written communication

Sub: Completion of work/provision of amenities as agreed to in Agreement to Sale
executed between you & the members of this Society.

Dear Sirs,

As per the instructions from the members of ______________ Co-op Housing Society Ltd. We are serving this notice upon you for completion of incomplete work and for demand of payment of compensations as mentioned in this notice.

We the members of ______________ Co-op Housing Society Ltd, have booked flats in the scheme called ___________________ The agreements were registered and for that we have paid stamp duty and registration charges. The agreements were registered between ___________and ___________ dates. You have handed over the possession of the flats. In spite of our repeated reminder to you, you have failed to register the Co-operative Society of the members of the Scheme “__________” developed by you. The members have come together and formed a Co-operative Society without your cooperation and the same has been registered as well by the Maharashtra Govt.

2. Refund of Society registration charges and Legal Charges:

The Society is formed by us with our own money and you have already collected money for formation of Society and for legal fees. Hence, you have to refund Rs.__________ per person per head + 18% interest thereon within 15 days from receipt of this notice to each member of this Society.

Or

For Formation of society only Rs 500/- per head is enough as per the Commissioner of Co-op and Akhil Bhartiya Grahak Panchayat Pune whereas you have collected Rs…………….. per head which is very high. Hence you are requested to refund Rs…………… per head with 18% interest.

3. We, the members of this Society have entered into a registered agreement to sale with you individually. You have infringed this agreement. As the agreement is binding on you by virtue of Maharashtra Flat Owners Act, 1963, please note that you are liable to be prosecuted under the said act for infringement of Rule 3(2), Rule 11 & Rule 13 of the said Act.

4. We have complied with all the conditions of agreement to sale but you have failed to provide the required amenities as well as failed to complete the work of the project within the stipulated time mentioned in agreement and as per commencement certificate. You are hereby called upon to complete the incomplete work & other formalities within 30 days of the receipt of this notice.

5. Late Possession Charges :

As per the Agreement to sale, it was binding on you to hand over the possession of the flats on or before __________ but you have failed to complete the work of the building including providing completion certificates of the PMC. You have handed over the possession late by 18 months. The details of claims of all the flat holders are enclosed with this letter as Annexure A. Since you have handed over the possession late, the members have suffered mental agony as well as have suffered financial losses. The members had to pay heavy amounts towards rent for the period you have delayed the handing over of the possession. Besides they have paid Pre-EMI interest on the loan raised through financial institutions/Banks. You are hereby liable to pay the house rent plus Pre-EMI interest amounts we have paid and interest thereon as claimed by the individual members in Annexure A.

6. Refund of Electricity Meter Charges :

As per the agreement, every member of the Society has paid an amount of Rs. ____________/- for the Electricity Meter & Other charges. As you have not provided the electricity meters, you are liable to return the entire amount taken by you from the individual members, along with 18% interest thereon, because we individually have paid to the MSEB for getting new electricity Meters.

7. Electrical Meter wiring charges :

The members have obtained individual electricity connection meters (from MSEB), you have not provided proper wiring and it is lying open. Since the Society has got the work done on its own, an amount of Rs.___________/- has been spent on this job. You are hereby requested to pay the expenditure incurred towards this job within 30 days.

8. Refund of Water Connection and Water Pump Charges:

As per Development Control Rules of PMC, provision for water supply connection was not done by you. The members have contributed for a bore well as well as the electric submersible pumps to this bore well. An amount of Rs._________ /- has been spend for provision of water by the Society. Since the requirement was overlooked by you, you are liable to pay this amount. You are hereby requested to refund amount immediately to the Society. A detailed compensation claim and claim for remaining work of the site is enclosed as Annexure B).

9. Improper / faulty Plumbing Work :

The plumbing work of the building has not been done by you properly as per the Development Control Rules of PMC. The entire plumbing work is faulty. You are hereby asked to complete the plumbing work properly within 15 days of the receipt of this notice otherwise we will remove the fault thereafter and charges will be recovered from you.

10. Standby Motor Pump :

You have not provided standby motor for the sump as per the requirement. This is essential in case of emergency. Hence you are hereby requested to provide one standby electric motor pump for the sump within 15 days otherwise pay the compensation as per Annexure B

11. Provision of Drinking Water Supply :

As per the Development Control Rules of PMC, 135 Liters of water per head or 675 liters of water per day/per flat may be provided by the builder. Since you have failed to provide drinking water connection to the Society, you are hereby asked to provide drinking water facility to the Society within 30 days of the receipt of this notice. If you do not comply with drinking water facility, please note that you are liable to pay compensation charges as claimed in Annexure B.

12. Provision of Lift for building :

As agreed by you in the Agreement to Sale and as per the Development Control Rules of the Corporation and the approved plan, you have not provided lifts to the building. In absence of the lifts, the members are facing innumerable difficulties in their day to day life. As very old persons are staying on 5th and 6th floors of the building and Some residents have even expired because of non provision of lift (blood pressure increased and hence heart failed) If you do not provide lifts to the building within 30 days of the receipt of this notice, you will be liable to pay Rs. _______/- per lift to the society. Also you are liable to pay compensation for the deceased resident due to lack of lift.

13. Provision of Generator Backup :

As agreed by you in Agreement to Sale and as advertised by you through various media, you have not provided any Generator either for lifts or parking lights. In absence of the Generator, the members are facing lot of difficulties and you are responsible for the agony and harassment of the members by not providing generator backup facility to the building. You are hereby requested to provide Generators immediately failing which an amount of Rs. ------/- will be due for you towards this facility as compensation.

14. Provision of painting work :

Neither painting has been done properly nor is the painting work of the entire building completed. You are hereby requested to do the painting work of the building, stairs etc. Failing which you will be liable to pay the compensation amount of Rs. ---------/- for the painting work completion.

15. Water proofing work :

Please note that because of the improper work and in absence of proper waterproofing done, all the flats are leaking and the walls near the stairs become wet. Hence life of the building will be decreased and also it is health hazards to the residents. You are hereby requested to do the waterproofing of the building and If you fail to complete this work you will be liable to pay an amount of Rs.------/- towards this work.

16. Provision of internal roads and gate :

As per the approved plan, the internal roads and the Gate of society have not been built by you. The work is incomplete and half-way through. You are hereby requested to complete the work forthwith within 30 days of the receipt of this notice, failing which an amount of Rs. ----------/- will be due from you on account of this work.

17. Proper tile fitting and leakage of outside water :

The surrounding areas around parking and near the water tank (sump) are left unattended. The outside water is leaking into the water tank. The tiles are needed to be fitted. This work is very essential and the cost towards this work of Rs. -------/- will be due from you.

18. Construction of compound wall :

The Compound Wall has not been built by you as shown in the plan. As there is no security to the society, the hawkers and the thieves could have easy access to the entire premises. You are responsible for damage being caused to the premises by not providing compound wall. You are hereby called upon to construct the work relating to compound wall otherwise you will be liable to pay an amount of Rs. ----------/- towards the cost of the constructions of the compound wall as per plan.

19. Provision of Garden as per advertisement :

As promised and advertised by you, no provision of Garden has been given by you. Some bushes have been planted along side the dirty nallah. This is the biggest fraud committed by you as on the basis of the beautiful garden shown by you, the entire flats were booked by the customers based upon this advertisement. The land remaining along side the nallah is garden as per your definition. You are hereby asked to complete the garden work as advertised by you.

20. Provision of Completion Certificate from PMC :

You have obtained ‘Commencement Certificate’ of the project from the PMC, it was binding on you to complete the construction work within a reasonable time. Since you have failed to complete the work even after five years, you are hereby asked to obtain a ‘Completion Certificate’ of the building immediately by completing the required and essential formalities (Obtaining various NOC of all the department of PMC) and hand over the same to this society. If you fail to comply with this clause of the agreement, you will be liable to pay an amount Rs. --------/- to each flat owner, which may please be noted.

21. Refund of One Time Maintenance Charges :

You have collected One Time Maintenance charges from each member of this society. As mentioned in the ‘Agreement to Sale’ you have collected an amount of Rs.__________/- and Rs. _____________/- respectively from 1BHK and 2BHK flats @ _______ /- per Sq.Ft from each member of this society. You have collected an amount of Rs. _______________ in total, this money has been taken by you illegally, you are hereby directed to return the entire amount of OTM collected by you from all members of this society within 15 days with 18% interest. If you fail to do so, further action for financial irregularities will be taken against you and you will be responsible for all the consequences.

22. Maintenance charges of the building :

As per the agreement, you are not maintaining the buildings. The members are doing all the maintenance activities by contributing among themselves through society. Since you did not from the Society, the members were compelled to come together and from the Society to carry out the daily routine maintenance of the buildings. Therefore, the members are not liable to pay any maintenance charges to you.

23. Refund of Loan taken by you from _________________ Bank LTd and de-mortgaging of property :

You have raised loan from _________________ on the project and the entire property has been mortgaged to this Bank. You are hereby asked to repay all the loan raised from this Bank and get the property card & 7-12 extract cleared within 15 days. Failing which necessary criminal complaints will be lodged against you and cost will be borne by you.

24. Handing of original documents of the building to the society :

You are hereby asked to hand over the following original documents to the Society immediately within 15 days of the receipt of this notice. If you fail to do so, it will be treated as breach of contract entered between the members of this Society and your company and further criminal proceedings against you under Rule 3(2) of the Maharashtra Ownership Act, 1963 (Revised 2008) will be initiated without any further notice.

i. Approved Lay-out plan

ii. Demarcation plan

iii. Drainage lay-out plan

iv. Water line lay out plan

v. Wiring lay out

vi. Original development agreement

vii. Original POA between you and the other owners of the land

viii.Original completion certificate

ix. All N O C’ s from various departments of PMC

x. Approved/sanctioned load from MSEDCL

xi. Original 7-12 extract/Property Card(Original) with free title.

xii. Guarantee/warrantee cards of Lifts/electrical Motors etc.

xiii. Original documents of FSI/TDR issued by PMC

xiv. Conveyance Deed in favor of society :-

25.Conveyance deed :

Under the Maharashtra Flat Ownership Act, 1963 Rule 10(8) it was mandatory for the promoters to form the Society within 4 months from the date of registration of flats by the 60% consumers and complete the conveyance deed in favor of the Society within next four months.

Since you have failed to act in this matter, you have committed breach of Agreement and Maharashtra Ownership Act, Rule 10(8). This breach of agreement on your part is punishable offence under Rule 13 of the said Maharashtra Ownership Act (Revised) 2008 and you are liable for up-to one year imprisonment and fine up-to Rs. --------/-.

You are hereby called upon to explain why action against you under these rules may not be taken against you.

In order to give you one more, last & final opportunity, you are hereby given notice that all the members of this Society have paid stamp duty against the ‘Agreement to Sell’ and further it is mandatory for you to enter into a ‘sale deed’ on required stamp paper with this Society and register the same with the Sub-Registrar, ______________, within 30 days of the receipt of this notice. Any charges required to be paid in this regard to the Government, will be borne by this Society.

If you fail to take necessary action and complete the ‘conveyance deed’ within this period, it will be presume that you are not co-operating in this matter and further action by the members of this society to register the conveyance deed without your cooperation will be taken as per MOFA 1963 (amended 2008). Besides, under Rule 4 sub-rule 13 & Rules 3(2) & 11 of the Maharashtra Ownership Act,1963 (Revised 2008) further criminal & civil proceedings will be initiated against you without any further communication, which may please be noted.

Thanking you,

Yours faithfully,

Encls:

1. Annexure A(individual compensation claims of members)

2. Annexure B (Compensation claim for common amenities & incomplete work)

Related Stories:


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Booking a flat means putting your life in danger

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Tragic Heroes

3) SUNDAY, OCTOBER 14, 2012

There is something hypnotizing about Blue Ridge Hinjewadi!

4) MONDAY, JUNE 25, 2012

Invite me for a cup of tea!


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.

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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.

Related Stories:


1) Bombay High Court gives no relief to builders on VAT

2) घर खरेदी : व्हॅटची जबाबदारी बिल्डरांचीच

3) हायकोर्टाचा बिल्डरांना दणका;व्हॅट भरावाच लागणार

4) Bombay High Court to give verdict on VAT today

5) Flat Owners Who Have Already Paid VAT Join the Fight!

6) 31st October Deadline is for Builders!

7) VAT - Questions & Answers

8) Pune Flat Owners United Against VAT

9) 'Builders confusing flat owners about VAT payment'

10) We refuse to pay VAT!

11) How to Refuse to Pay VAT

12) MCHI-Credai moves court against 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

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 +

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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

Related Stories:




1) घर खरेदी : व्हॅटची जबाबदारी बिल्डरांचीच

2) हायकोर्टाचा बिल्डरांना दणका;व्हॅट भरावाच लागणार

3) Bombay High Court to give verdict on VAT today

4) Flat Owners Who Have Already Paid VAT Join the Fight!

5) 31st October Deadline is for Builders!

6) VAT - Questions & Answers

7) Pune Flat Owners United Against VAT

8) 'Builders confusing flat owners about VAT payment'

9) We refuse to pay VAT!

10) How to Refuse to Pay VAT

11) MCHI-Credai moves court against 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

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.

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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

Related Stories:


1) Flat Owners Who Have Already Paid VAT Join the Fight!

2) 31st October Deadline is for Builders!

3) VAT - Questions & Answers

4) Pune Flat Owners United Against VAT

5) 'Builders confusing flat owners about VAT payment'

6) We refuse to pay VAT!

7) How to Refuse to Pay VAT

8) MCHI-Credai moves court against 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

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

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Monday, October 29, 2012

A 4 BHK Home of 1962 Carpet + 282 Terrace for 2.43 Crore at Baner Launched!

Park Grandeur, 3 BHK & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road, Baner Pune 411045 Launched!


4 BHK Home in  Park Grandeur - 3 & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road - Baner Pune 411045

Take my word. When you visit the 4 BHK Show Flat of Park Grandeur Baner, you are going to say only one thing - "Someday, this will be my home!"

However, your spouse may say, "Wouldn't it be too big for us? Why not go for a 3 BHK? Its as spacious as this!"

"If I had been looking for space - Don't you think I would have said - a 4 BHK Duplex or - a 4 BHK Penthouse?," you will say and add that all you want in life is "Home". A home something like I am getting in Park Grandeur Baner.

A home, located on main 100 feet wide under construction Baner Balewadi Link Road.
Opposite corporate office complex of one of the most respected multinational companies in India.
In one of the 3 highrise towers - 15 stories + 2 level parking - with all plush amenities and some shopping on the road.

A home with a private lift. Which has all sides open to sun, moon and wind. But close to human eyes.

A home which has 28 feet x 3 inches living cum dining with 10 feet x 22 feet 4 inches deck which will enrich life.


A home which has 12 feet 6 inches x 12 feet kitchen with a dry balcony - & a servant room - where more than food will be cooked and relationships will be preserved.

A home which has 2 children's bedrooms of the same size - 15 feet x 11 feet - telling the whole world who is more loved and pampered.

A home which has 16 feet 9 inches x 12 feet - master bedroom with 6 feet 1 inch x 9 feet 9 inches attached terrace - big enough for an occasional 'night out' - which will have a study 9'9" x 6'9", a dressing 8'2" x 7' & a toilet 8'2" x 7'.

And the 4th bedroom, at the main door, will be for those whom we never want to see off.

Someday, when you will visit Park Grandeur Baner and ask about the property price, for sure, you will be more than happy to announce, this is my home.

To know more about Park Grandeur Baner, please, contact:


98503 80000 / 98501 80000 / sales@pridepurplegroup.com / www.pridepurplegroup.com


View Park Grandeur, 3 BHK & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road, Baner Pune 411045 in a larger map

Site Office & Sample Flat of Park Grandeur - 3 & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road - Baner Pune 411045 Under Construction 100 feet Baner Balewadi Link Road - Park Grandeur - 3 & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road - Baner Pune 411045 Under Construction Corporate Complex of Cummins opposite Park Grandeur - 3 & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road - Baner Pune 411045 Top View of 15 Story 3 Towers of Park Grandeur - 3 & 4 BHK Homes, Penthouse & Duplex on Baner Balewadi Link Road - Baner Pune 411045

Related Stories:


1) TUESDAY, SEPTEMBER 11, 2012

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Last Few 3, 4 & 5 BHK Flats Available Near City Pride Kothrud!!

2) MONDAY, AUGUST 27, 2012

Villa for a Forest Bum!

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 +

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To receive free emails or free RSS feeds, please, subscribe to Ravi Karandeekar's Pune Real Estate Market News Blog

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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


Related Stories:


1) 31st October Deadline is for Builders!

2) VAT - Questions & Answers

3) Pune Flat Owners United Against VAT

4) 'Builders confusing flat owners about VAT payment'

5) We refuse to pay VAT!

6) How to Refuse to Pay VAT

7) MCHI-Credai moves court against 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

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.

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Saturday, October 27, 2012

31st October Deadline is for Builders!

Don't pay VAT to builders, says Grahak Panchayat:


As the last date for paying VAT by developers on flats sold during 2006 and 2010 is nearing, several builders are sending notices and exerting pressure on buyers to cough up the money. However, consumer organisations say the deadline is for builders and flat buyers need not pay the VAT

Several homebuyers from Maharashtra are complaining harassment from builders for coughing up more money as value added tax (VAT). Citing a circular issued by the Maharashtra Sales Tax Department, builders are asking flat buyers to pay the additional money before 31st October for their homes bought between 2006 and 2010. However, Pune-based Grahak Panchayat has asked buyers neither to pay any heed to these tactics from builders nor pay any money as VAT. (Click to Read More)

"Builders liable to pay VAT"


Deputy commissioner of sales tax, Mumbai, Swati Kale spoke with Sudhir Suryawanshi answering questions about the controversial Maharashtra Value Added Tax (VAT).

Sudhir: Who has to pay VAT, the flat buyers or developer?

Kale: The liability to pay VAT is on the developer. We are not after the buyers. The developers are creating the perception that the buyer has to pay the tax. But paying VAT is the developer’s responsibility. (Click to Read More)

Query about VAT?
Feel Free to Contact These Sales Tax Officers:


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

Related Stories:


1) VAT - Questions & Answers

2) Pune Flat Owners United Against VAT

3) 'Builders confusing flat owners about VAT payment'

4) We refuse to pay VAT!

5) How to 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

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

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VAT - Questions & Answers

Basic Information About Tax On Builders & Developers:



The Government of Maharashtra has amended the definition of “Sale” under the Maharashtra Value Added Tax Act, 2002 with effect from 20th June 2006 thereby including in the said definition
"The transfer of property in goods involved in the execution of works contract, including an agreement for carrying out for cash or for deferred payment or other valuable consideration, the building , the construction, manufacture, the processing, fabrication, erection, installation, fitting out, improvement, modification, repair or commissioning of any moveable or immoveable property."
As a result of this amended definition, the builders and developers become liable to pay tax on the sale of their under construction flats to the prospective buyers with effect from 20th June 2006 in respect of the transfer of property in goods involved in execution of such contracts.

However, it is abundantantly clarified that if sales takes place after the construction is completed then the tax is not applicable on the sales of such flats or commercial complexes etc.

The constitutional validity of the said amendment was challenged by the The Maharashtra Chamber of Housing Industry and others by way of a writ petition bearing number 2022 of 2007 filed before the Hon’ble Bombay High Court whereby the hon’ble Court was pleased to grant a conditional interim stay with regards to applicability of tax on said sale. But on 10th April 2012, the hon’ble Bombay High Court after the final hearing was pleased to uphold the constitutional validity of the amendment made to definition of “Sale”.

Hence in view of this judgment, the applicability of tax upon the builders and developers in respect of the transfer of property in goods involved in execution of building/construction contracts is held valid and the same becomes effective from the date of amendment i.e. 20th June 2006.

For the sake of bringing in simplicity of calculation of this tax, The Maharashtra Value Added Tax Act provides for three options to the builders/ developers to discharge their tax liability under any one of this option as under:

OPTION-1:
As per rule 58 of the Maharashtra Value Added Tax Rules, 2005 the sales price may be determined after deducting from the agreement value; the value of land, labour, chargers for planning, designing, architects fees, hire charges of machinery etc. The tax is computed on the value arrived as above. The tax computed as above is reduced after considering the tax paid on the purchases of building material (i.e. input tax credit). The tax so determined is required to be finally paid.

OPTION-2:
The rule 58 also provides for the standard deduction at 30% as given in the Table. The deduction towards the land value is taken from the total agreement value, the sales price is computed by further taking standard deductions (@ 30%) as provided in the Table. The tax is computed after applying the schedule rate of tax on sales price so arrived. The tax computed as above is reduced after considering the tax paid on the purchases of building material (i.e. input tax credit). The tax so determined is required to be finally paid.

OPTION-3:
The section 42(3) of the Maharashtra Value Added Tax Act provides for tax at the rate of 5% on the entire contract value. The developer may opt for this and calculate the tax liability at the rate of 5%. This tax liability is reduced by the amount of taxes paid on purchases i.e. Input Tax Credit. The balance tax liability so computed is to be discharged.

Further, during the intervening period of litigation, various developers associations had made representations before the State Government to bring in a more simplified method of taxation in this respect.

Accordingly, the State Government, on examination, announced a scheme and issued a notification. As a result in respect of the agreements made on or after 1st April 2010 the applicable tax rate is fixed at 1% of the agreement value.

It is now learnt by the Sales Tax Department on the scrutiny of the books of accounts of certain developers after the passing of the judgment of the Bombay High Court, that many developers have collected taxes from their customers but have failed to discharge their tax liability by depositing the collected tax into the Government Treasury.

Now considering the three options as discussed above, it becomes apparent that the tax liability of developer for the period 20.06.2006 to 31.03.2010 may come to much less than 5% of the agreement value after adjustment of the available set-off as may be available to him.

The law being clear on the point of leviability of tax upon such developers, it is advised that they discharge their tax liability as may be applicable to them immediately without any further delay.

FREQUENTLY ASKED QUESTIONS [FAQs] ON TAXATION OF DEVELOPERS


1. What is the effective date from which the VAT will be applicable for sale of under constructed flat?

Ans: The VAT is payable from the date of amendment i.e. 20 June, 2006.

2. On what type of contracts the VAT is payable?

Ans: VAT is payable in respect of sale of under construction flat.

3. Whether VAT is payable on the sale of completed flat?

Ans: VAT is not payable if a completed flat is sold by the developer.

4. How is VAT calculated? Is it on under construction or ready flats?

Ans: It is on under construction flat not on ready flats.

5. Who has to pay VAT; Flat buyer or Developer?

Ans: The liability to pay VAT is on developer.

6. Who has to pay VAT if a developer has not told the buyer of VAT to be paid when he purchased flat post 2006?

Ans: The developer has to pay the VAT.

7. What is the rate of tax under VAT Act applicable for agreement to sell for under construction flats?

Ans: Tax rates would be those which apply to the goods in which property is transferred.

8. The agreement to sell the flat was executed before 20.06.2006 and the building was under construction and possession is given after 20.06.2006. Whether the VAT will apply in such case because the agreements were executed prior to 20.06.2006? If yes how the sale value will be determined for calculation of VAT? Whether the amount
received prior to 20.06.2006 will be exempt from VAT? .

Ans: Yes. VAT will apply. It will be levied on value received or receivable after 20th June, 2006.

9. Whether the levy of VAT on agreement for under construction flats / shops etc. is covered with in the amended definition of Works Contract? When is it not leviable?

Ans: Yes. It is covered. If the sale is after completion, there is no levy of
VAT.

10. What are the various options available to the developers for disclosing tax liability?

Ans: Developers can discharge their tax liability by any of the following option:-

From 20.06.2006 to 31.03.2010:

1. Composition Scheme U/s 42 (3) -
Under this scheme developer has to pay 5% tax on the agreement value. Land deduction is not available. Input tax credit is available subject to the reduction of 4 per cent.

2. Actual Expense Method U/r 58 -
Under rule 58, the deduction of Labour & service charges is available on actual basis. Land deduction is also available. Set-off will be calculated subject to the conditions u/r 53 and 54.

3. Standard Deduction Method U/r 58 -
Under rule 58, the deduction of land cost will be allowed. Thereafter, 30% standard deduction from remaining amount will be available as per proviso to sub-rule 1. Set-off will be calculated subject to the conditions u/r 53 and 54.

After 01.04.2010:

The developers can opt for fourth option also, under this option u/s 42 (3A), developer has to pay 1% tax on agreement value. No land deduction and input tax credit is available. Needless to mention that, the developers will be required to make the payment of interest according to the provisions of law.

11. Whether the developers will be eligible to claim set-off of VAT paid on purchases?

Ans: Yes. The Purchases made on or after 20th June, 2006, will be eligible for set off subject to MVAT rules. However, if the developer opts for 1% composition scheme for agreements registered from 1/4/2010 onwards, then no set off is eligible.

12. If composition scheme is not opted then what is the rate of tax and how the sales price will be determined? What are the deductions permissible like labour charges, profit margin etc. In such cases how the set off will be worked out?

Ans: Deductions are available as per rule 58. Set-off will be worked out as per rules 52, 53 and 54.

13. In the system, return cannot be accepted for old period prior to date of registration. What is the situation?

Ans: The periodicity for earlier period will be set manually. Necessary instructions have been issued to help desks. Developers are requested to contact to help desk officer.

14. Whether the credit of input tax paid while effecting purchases of materials like cement, iron & steel etc. required to be used in the Construction project, will be available?

Ans: Yes, they will get input tax credit of the taxes paid on purchases subject to the set-off rules.

15. If an Agreement to Sell is prepared much in advance at the time when a prospective buyer book the accommodation in a building under construction and the developer concerned undertakes to give possession of the accommodation so booked after obtaining completion certificate. At what point of time the VAT under the amended law would be payable?

Ans: Tax is levied as and when the installments become due and payable or are received, whichever is earlier.

16. Many times mere advances are received and agreement is executed much later. What will be the point of liability whether at the time of receiving the advances or at the time of execution of the agreement or thereafter on possession?

Ans: Tax will be levied from the date of the agreement. The amount of advance, as and when it is adjusted towards the agreement amount, will be taxed.

17. The builders receive non-refundable deposits and other charges under the agreement such as electricity deposit, water charges, legal charges, development charges etc. Whether such receipts will also form part of sale price for VAT?

Ans: The amounts which are received as deposits will be a deduction to the extent such amounts are actually paid to other authorities.

18. In under construction flats, the amounts are received in installments. How the sale price will be determined? Whether the actual receipts will be taken as sales or the whole of the agreement value will be taken as sale at the time of execution of the agreement, even though the amount is yet to be received?

Ans: Received or receivable. Receivable means due and payable.

19. Can the VAT applicable in above cases be collected by raising a debit note or the same should be mentioned in the agreement itself? Whether VAT should be collected on each installment or at one go upon execution of the agreement?

Ans: Yes. It can be collected by raising a debit note. Specific mention in the agreement is a choice of the contracting parties. It will be payable on the installments received.

20. Whether any interest or penalty will be attracted for non-registration with sales tax authorities under VAT and non-submission of VAT returns for the transactions executed for sale of flats / shops under construction between intervening period i.e.
20.06.2006 to 07.02.2007?

Ans: Please refer to circular 14T of 2012 Dt. 6th August, 2012.

21. What will be the VAT implications where mere advances are received from buyers and agreement for sell is not executed with the buyer?

Ans: There is no tax liability.

22. If a project based partnership firm is created for the project which commenced in the year 2006 and completed in the year 2008 and stands dissolved as on today and the bank account is also closed as of now, then what would be the legal implications of producing the partnership deed that is already dissolved for obtaining MVAT registration?

Ans: The developers have to provide evidence for the period when the firm was in existence. The necessary instructions have been issued to the registration authorities. Dealer may contact to respective registration authority in this regard.

23. Whether a possession letter or letter from architect can be termed as completion of building. Who is the proper authority to grant the completion letter? Sometimes application for completion is made but completion is granted much later in such case whether date of application is considered to be the date of completion?

Ans: Whether sale is of a completed flat is to be ascertained from books of accounts. Necessary clarification had been issued in Trade Circular 12 T of 2007 dt. 7/2/2007.

24. In the event where an agreement entered into is cancelled and said flat is sold to someone else and the agreement is again entered. What would be the VAT implication for the first sale and the second one?

Ans: If the first sale of flat is cancelled then the subsequent sale of the same flat by the developer is taxable. The tax paid on first sale can be adjusted towards subsequent sale.

25. If builder constructs the flat on the land which is owned by landowner and out of the constructed flats some flats are given to landowner and other flats are sold by builder to prospective buyer. Landowner sales the flat afterwards to buyers. In such instance what will be the point of taxation? Whether landowner is liable to pay the VAT on sales of flats which were handed over to him by builder?

Ans: Builder is liable to pay tax only in respect of sale of flats to prospective buyers. The flats which are given to landowners will not be taxable. The landowner when subsequently sales the flat will not liable to pay any tax as he is not a dealer.

26. Out of the three different methods of tax working, the builders/developers are given option to choose a method of their choice with a restriction that method should be applied to whole of the project concerned and no deviation is permitted. It may happen that in a project having execution period of more than 2 years, there may be possibility that some flats may have been sold before 31.03.2010 and some may be sold after 31.03.2010. In that scenario, whether the flat purchasers who have entered into an agreement after 31.03.2010 will be entitled to pay VAT to the developers @ 1% of Agreement Value?

Ans: The composition scheme of 1% is applicable in respect of agreement registered on or after 1st April 2010, irrespective of the method adopted for periods prior to 01/04/2010. However, set-off or deductions earlier claimed in respect of such agreements will have to be reversed.

27. Most of the development / redevelopment projects involve purchase of Transferable Development Rights (TDR) as these are related to land only, the cost of TDR should also be available as deduction from sale price, along with cost of land.

Ans: Yes, the cost of TDR will be available for deduction from sale price along with cost of land.

28. A scheme was launched in 2005-06. Major purchases of cement and steel were effected during the year 2005-06. The purchases effected after 20.06.2006 are much lesser as compared to those effect prior to it. Sales of flats were effected during 2007-08, 2008-09, 2009-10 etc. that is after 20.06.2006. Dealer is liable to pay tax on all these sales as there was no completion certificate. Even if he chooses to discharge liability by way of composition @ 5%, he is losing set-off of taxes paid prior to 20.06.2006. In the normal course this set-off is not admissible as per provisions of law. Whether such cases can be dealt with administratively? In addition to taxes whether there will be burden of interest for these old periods?

Ans: Developer will not be entitled for set-off on purchase effected prior to 20/06/2006. Interest will be payable in addition to taxes paid.

29. If the builders/developers commences project of 100 flats and the said project is sold for three years 2007-08, 2008-09 and 2009-10, like 30 flats in first year, 40 flats in next year and 30 flats in third year. Whether builder/developer is allowed to claim land deduction proportionately in three years or in first year only?

Ans: He may claim land deduction in first year or proportionately in three years.

30. The builder had sold and registered one flat in January 2010 and three flats in May 2010. Can builder pay VAT for one flat as per Standard Deduction Method u/r 58 and on balance three flat pay 1%?

Can he pay 1% tax under Composition Scheme u/s 42(3A) for all the four flats as on today? Can he change the method of tax in same project after 01.04.2010 under Composition Scheme u/s 42 (3A)?

Ans: He is not allowed to take benefit of 1% Composition Scheme u/s 42(3A) for flats sold and registered in January 2010. The composition scheme u/s 42(3A) at 1% of agreement value is applicable for agreement entered on or after 01.04.2010.

31. In the course of construction project what will be the impact of land cost when it is incurred or paid prior to 20-06-2006 and there is no land cost thereafter i.e. within the period: 20/06/2006 to 31/03/2010

Ans: You may claim the deduction of land cost at the time sales.

32. Developer has started construction of a project prior to 01.04.2006 consisting of about 100 units. The work was started in the year 2005 and completed in 2008. Whether it has to pay MVAT in respect of all the 100 units or only the units sold under construction i.e. 30 units and not on 70 units which have been sold after construction was completed, occupation certificate obtained and documents registered.

Ans: The taxability will arise only in respect of transfer of property after 20/06/2006. Please refer to Trade Circular 14 T of 2012 dated 06 August, 2012.

33. While calculating the liability for the period from 20/06/2006 to 31/03/2010, some developers have effected purchases in one year and there are no sales in that year. As a result there is a refund. In the second year, there are sales. Can we adjust the refund of first year to second year?

Ans: As per the provisions of MVAT Act, refunds cannot be carried forward from one year to next year. However, it has been decided administratively that in respect of developers the carried forward of refund from one year to next year will be allowed for the period from 20/06/2006 to 31/03/2010.

34. A buyer has purchased ready flat in April 2006 when no VAT was in place. Building society got formed in 2008/2009. Can the developer ask VAT from such buyers?

Ans: Since it is a sale of completed flat, no VAT is payable.

35. A buyer has purchased under construction flat in 2009. Following discussions with the developers, he put 5% as VAT to be paid in an escrow account. Will VAT remain at 5% or would the buyers have to shell out extra for interest for not paying VAT over the past three years?

Ans: Considering the various options available to developers, the liability may come much less than 5 %. However, the developers are also required to pay interest for late payment of taxes.

36. If the buyer refuses to pay VAT more than 5% as per Government’s order, does the developer have any right to demand more VAT?

Ans: The liability to pay VAT is on developer. It is not contingent on collection by developer. However, whatever option the developer chooses to discharge the tax liability, the net burden will be less than 5%.

37. Was the recent Bombay High Court order in reference to paying 1% VAT?

Ans: High Court has upheld the composition scheme of 1% w.e.f. 01/04/2010. Also, the High Court upheld the amendment to definition of “Sale” from 20/06/2006.

38. If the Builder, Developer has commenced the construction in 2006-07, initially for two years there was no sales, there were only purchases for first two years, i.e. 2006-07 and 2007-08, the sales agreements were effected in the year 2008-09. Whether the dealer can claim refund for the first two years or can he carry forward the set-off of first two years to next financial year.

Ans: He can carry forward the set-off of first two years to next financial year for the period from 20/06/2006 to 31/03/2010.

39. If the dealer has effected purchases in one year and part sales of flats has taken place in that year and part of the sales in next year, How the set-off to be granted, set-off to be granted proportionately or full set off in first year.

Ans: Set-off is based on purchases. He may claim full set off in the year in which purchase are made. However, if he discharge the liability @ 1% under composition scheme for agreement entered on or after 01/04/2010, then he is required to reverse the set-off proportionately, if it is already claimed.

40. In the first year of construction projects, purchases, expenses and
land purchases are more in comparison to less sales or less agreements, therefore whether the Builders, Developers can carry forward the ITC, land Deductions to periods of next year as sales in next year are substantial.

Ans: The Builders, Developers can carry forward the ITC; land Deductions to periods of next year for the period from 20/06/2006 to 31/03/2010.

41. At what point of time deduction has to be given in respect of value of undivided share in Land u/r 58(1A). Whether such value of land be deducted from first few installments till the value of land is covered and thereafter deduction for payment made (or to be made) to subcontractors and from the final installments reduction on account of other services (as per Table), or all these deductions have to be apportioned proportionately on all the installments (as and when amount received from the purchaser/s). And the periodic taxable value should be calculated accordingly.

Ans: The developer may apply the initial installments towards cost of land.


42.During the period 2006-2010, since there are huge purchases of material during 1st year, so developer has to claim refund and after that there are dues due to sell of flats. What will be the position? Can he carry forward his refund to the next year?

Ans: Yes. He can carry forward it to next year for the period from 20/06/2006 to 31/03/2010.

43. The developers have complained that contrary to the High Court order of 2007 and 2012, sales tax department have erred in considering them as dealers and demanding high tax from them?

Ans: Hon’ High Court had upheld the amendment to MVAT Act and levy of tax on sale of under construction flats.

44. What action is the government planning to take on behalf of consumers if VAT of 5% is collected post 2010?

Ans: The excess collection of tax if any shall be liable for forfeiture.

(www.mahavat.gov.in)

Related Stories:


1) Pune Flat Owners United Against VAT

2) 'Builders confusing flat owners about VAT payment'

3) We refuse to pay VAT!

4) How to 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

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


Pune Property Rates to Go Up or Down?

Pune registered India’s highest annual house price increase!


According to Global Property Guide, Pune registered annual house price increase of 33.33% (21.06% inflation-adjusted) during the year 2012. Highest in India!

So, now, at the end of 2012, question is - "Where are Pune property rates headed?"

If you visit PROFEST WEST 2012, organized by CREDAI Pune Metro at VITS Hotel Balewadi, you can see that at Hinjewadi, Wakad, Balewadi, Baner, Bavdhan, Pimpri and at all popular locations in Pune, property rate is above Rs. 4,500 per sq.ft. Which was around 3,200 per sq.ft. at the beginning of 2010! For example:

1) Sai Laurel Park Pimple Gurav - Rs. 4,700 per sq.ft.
2) Yash Sankul Pimple Saudagar - Rs. 4,600 per sq.ft.
3) Sai Ambience Pimple Saudagar - Rs. 5,040 - 5,0900 - 5,140 - 5,190 per sq.ft.
4) Mont Vert Seville Wakad - Rs. 4,599
5) Mont Vert Dieu Pashan Sus Road - Rs. 5,233 per sq.ft.
6) Mont Vert Vesta Bhugaon - Rs. 4,333 per sq.ft.
7) Celestial City Ravet - Rs. 4,300 per sq.ft.
8) 43 Private Drive Balewadi - Rs. 5,700 - 6,350 per sq.ft.
9) Elite Homes Wakad - Rs. 4,100 - 4,650 per sq.ft.
10) Empire Square Chinchwad - Rs. 5,300 per sq.ft.
11) Sukhwani Sepia Wakad - Rs. 4,365 per sq. ft.
12) Sai Deep Karve Nagar - Rs. 7,250 per sq.ft.
13) Saarrthi Sovereign Hinjewadi Phase 2 - Rs. 3,850 - 3950 per sq.ft.
14) Saarrthi Signor Hinjewadi Phase 1 - Rs. 4,300 per sq.ft.
15) Saarrthi Sinclair Warje - Rs. 4,400 per sq.ft.
16) Palladio Wakad - Tathawade - Rs. 4,200 - 4,400 per sq.ft.
17) Royal Rahadki Greens Rahatani - Rs. 4,990 - 5,000 per sq.ft.
18) Rose Icon Pimple Saudagar - Rs. 5,000 - 5,150 per sq.ft.
19) Nandan Astra Wakad - Rs. 5,000 per sq.ft.
20) Nandan Acura Baner - Rs. 5,300 per sq.ft.
21) Pristine Royal Aundh - Rs. 8,100 per sq.ft.
22) Pristine Privilege Aundh - Ra. 5,400 - 6,000 per sq.ft.
23) Pristine ProLife Wakad - Rs. 4,500 per sq.ft.
24) Neco Park Pimple Nilakh - Rs. 4,700 - 4,900 per sq.ft.
25) Wisdom Park Pimpri - Rs. 4,590 - 4,860 per sq.ft.

When I asked one of the senior real estate professionals about Pune property prices in 2013, he said, "If people keep on buying properties - rates will keep on rising!". So, tell me what are you planning to do?

A Few Photographs of CREDAI Pune Metro's PROFEST WEST 2012:



View Credai Pune Metro Presents "PROFEST WEST" 2012 in a larger map

VITS Hotel - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
VITS Hotel - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Orchid Convention Centre - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Orchid Convention Centre - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Kushal (www.kushal.org) - training and skill building for construction workers - CREDAI Pune Metro & National Skill Development Corporation India (NSDC) Project at PROFEST WEST 2012
Kushal (www.kushal.org) - training and skill building for construction workers - CREDAI Pune Metro & National Skill Development Corporation India (NSDC) Project at PROFEST WEST 2012
Pillarless Orchid Convention Centre - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Pillarless Orchid Convention Centre - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Property Buyers at Registration Counter - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Property Buyers at Registration Counter - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Good Response - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Good Response - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Pride Purple Group (www.pridepurplegroup.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Pride Purple Group (www.pridepurplegroup.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Aishwaryam (www.aishwaryam.net) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Aishwaryam (www.aishwaryam.net) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Mont Vert Luxury Homes (www.montverthomes.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Mont Vert Luxury Homes (www.montverthomes.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
G:Corp Greens Wakad (www.greenspune.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
G:Corp Greens Wakad (www.greenspune.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Pharande Spaces (www.pharandespaces.com) Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
Pharande Spaces (www.pharandespaces.com) Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
UrbanGram (www.urbangram.in) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
UrbanGram (www.urbangram.in) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 -28 October 2012 at VITS Hotel, Balewadi, Pune
DNV Builders (www.dnvbuilders.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
DNV Builders (www.dnvbuilders.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Pebbles II Bavdhan (www.pebblesii.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Pebbles II Bavdhan (www.pebblesii.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Elite Landmarks (www.elitelandmarks.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Elite Landmarks (www.elitelandmarks.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Kasturi (www.kasturihousing.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Kasturi (www.kasturihousing.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Vilas Javdekar Eco Homes (www.javdekars.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Vilas Javdekar Eco Homes (www.javdekars.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Teerth Realties (www.teerthrealties.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Teerth Realties (www.teerthrealties.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Nandan Buildcon (www.nandanbuildcon.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Nandan Buildcon (www.nandanbuildcon.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Property Buyers at Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune
Mantri Constructions (www.mantri.com) - Exhibition of Properties in Hinjewadi, Wakad, Baner, Balewadi & Bavdhan! - PROFEST WEST 2012 by CREDAI Pune Metro on 26 - 27 - 28 October 2012 at VITS Hotel, Balewadi, Pune

Related Story:


1) FRIDAY, OCTOBER 19, 2012

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