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The Trees by Godrej Properties in Vikhroli East, Mumbai

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The Trees by Godrej Properties in Vikhroli East, Mumbai

Last updated: May 28 2018
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  • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

    Can a complaint be made under MahaRERA? The site accepting online complaints?
    Last edited June 20 2017, 09:52 AM.

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    • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

      Originally posted by Mohit172 View Post
      Can a complaint be made under MahaRERA? The site accepting online complaints?
      Yes, the complaints module is active after registration on the site. Click on the "Online Registration" tab and then on "New Registration" tab. You will have to register as a "Complainant" and once the user id is created you will have to fill in personal details and then file a complaint.
      Talk TRUE; Talk IREF

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      • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

        Communication received from Godrej:
        1. As you are aware of the fact that GST is likely to come into force from July 1, 2017 (‘appointed date’), which will eventually subsume most of the indirect taxes prevailing including but not limited to Service Tax, VAT and Excise duty.
        2. You are our valuable customer and considering above, we have summarized the key aspects relevant for GST preparedness as under:
        1. Sale of Flat under construction (i.e. sale before issuance of completion certificate or before first occupancy, whichever is earlier) will be liable at 12% GST (provided the value of land is included in the amount charged). Therefore, the new applicable taxes will be collected on that portion of your flat for which collection is received and/or invoice is raised and milestones achieved after the appointed date.
        1. Going forward under the GST regime, interest, late fees and penalty on delayed payment received for any supply will also be liable to GST. Therefore, interest on delayed payment along with GST applicable thereon will be computed as and when the payment is made by you. Certain charges may attract different GST tax slabs which would be notified in due course of time. It would be advisable to pay the interest amount on or before 30th June 2017 so that GST liability on such interest amount can be avoided.
        2. As per Maharashtra VAT notification, VAT * 1% of the amount paid by you till 31stMay, 2017 have to be paid to the Maharashtra VAT department on or before 30thJune 2017 and for amount received between 1st June, 2017 – 30th June, 2017 by 21stJuly, 2017. You are required to pay the above VAT amount as well, if not paid earlier. Credit would be available in GST regime for any tax amount paid which is exceeding the tax amount payable on collection or billing, whichever is lower.
        3. It would be advisable that you clear all your outstanding dues against invoices raised upto 30thJune 2017 on or before 30thJune 2017 (payment is subject to realization of cheque in normal course) so that GST liability, if any, arising due to non-payment of such outstanding Invoices before the appointed date can be avoided.
        4. For any advance received before the appointed date and invoice raised after the appointed date, GST would be applicable on such invoices raised. Therefore, additional tax would be required to be collected from you on such advance amount received.
        5. As per the provisions of GST, any saving in cost in GST regime due to availability of credit in respect of taxes for which no credit is available in the current regime, would be required to be passed on in terms of section 171 of the GST Act. We are evaluating the same and will communicate to you about its impact in due course.
        We shall further keep you updated on any changes or requirements under the GST regime that would need your attention.

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        • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

          The main issue is in point 5 by which they have postponed their decision. They need to be reminded by each customer of the implications of the Ministry Of Finance notification of 15th June and accordingly the expectations of their customers so that they factor this in before reaching, hopefully, a fair and reasoned decision. Please do write back to them like I have already done.

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          • amitpshah
            amitpshah commented
            Editing a comment
            sdl321@
            To appease customers, Godrej might claim small 2% input tax credit, which reduces GST from 12% to 10%.
            But that's still 2x more than service tax 4.5%
            Trees may not have cost for land which Godrej pre-owned
            So costs, taxes, and input tax credit - restricted to construction expenses only?

          • itushar
            itushar commented
            Editing a comment
            Can you mention what have you sent to them, will send the similar stuff to them.

        • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

          Guys,

          This is what I found on other forum on IREF. I could not verify the validity of this article as I am having some connection error while opening TOI. Can you please check and confirm if this is reflected in the print media??

          "This is from Times of India today

          Incomplete projects

          If a project is in the initial stage, there is a higher chance that a consumer will get the benefits of the lower-cost pass over. But if a project is 80% complete, any major benefit is unlikely. On completed projects, buyers might not get any benefit of cost reduction but will have to pay 12% GST if the property is not registered before July 1. If a consumer has registered a property, the old tax rates will apply. For those registering after July 1, the 12% GST will be applicable. For benefits of the low rates to be passed on, the consumers might have to wait for at least 3 months.
          "

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          • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

            1. I am aware of another highly reputed Mumbai headquartered developer who has unofficially indicated that they will rework the base price such that the customer's outflow will be the same as earlier despite the headline rate of GST being 12% vs the 4.5% service tax. I also take solace in the Ministry of Finance circular of June 15 stating in so many words that customer outflow post GST should not increase. Taking the 2 together we can hope that Godrej might take a similar stand and not burden the customer and avoid potential litigation and consumer action even if it means shaving off a bit of their margin in the high margin project. We have no idea of this and need to wait for their communication indicating their decision.
            2.Till then, rather than simply waiting, as a customer I have replied to their GST communication sharing my expectation that they will factor in the MOF circular of June 15 and not increase the outflow of each instalment and thereby avoid burdening the consumer. According to me rather than simply wait and speculate of the quantum they will absorb, it is preferable to communicate your expectation. As a reasonably fair developer who would not want unhappy customers, perhaps they will then relook at their spreadsheets and see how they can best cushion any adverse impact on the customer.

            Please feel free to make your own decision in this matter. I have simply communicated my thought process and the action that I have adopted.

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            • itushar
              itushar commented
              Editing a comment
              did the same...

          • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

            sdl321@ while Godrej has a reputation to preserve, and Trees is their flagship project - it's only naive to assume builder will spend extra work-cycles, to save customer's GST tax
            But Godrej might want to be attractive to new customers i.e. offering them low GST, say ~3%, claiming they have huge input tax credits to claim & put to good use.
            That's when, they'll have to offer same deal, to existing customers.
            Godrej may do separate calculation for each building in a project, with best offers, for building with unsold inventory. My 2c.

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            • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

              You cannot change the headline GST rate of 12% for under construction residences. You have to rework the base price to pass on benefits of input tax credit. Now, they have already launched all 3 phases for Trees residential. And all 3 phases have step up pricing. So, if they rework base they will have to do it for all 3 phases.Very improbable that they will only do it for unsold flats. That would be a disastrous move.
              Do not believe I am being naive - if some builders, and I know 1 for a fact and that too a high premium one, rework the base to totally eliminate the effective outgo to customers then it will cast enormous pressure on builders like Godrej to follow suit. Please also do not ignore the MoF circular - this government too will exert enormous pressure because customers will publicly complain if effective outgo increases significantly and Godrej will not want to fall foul of the Govt. However, they are a listed company with quarterly compulsions and they may need to see to what extent they can take a hit for more than the ITC to cushion the impact on the customer. They have bought the land from another Godrej Company and the project has been declared to be a high margin one so the ITC can only be to the extent of about 30% being construction cost leaving a credit of 3.5% in the base price. But with tax being 12% the base will have to be much lower to prevent hue and cry.

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              • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

                In my conversation with the RM there, he said in somewhat muted tone that it is likely there will not be any change in end payout for the customer, he also said, no builder has clarity on how to go about it, and they will be the first ones to communicate with customers in fully transparent manner on the developments.

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                • Re : The Trees by Godrej Properties in Vikhroli East, Mumbai

                  If you notice, GST is applicable only if you are purchasing the property from the builder. There is no GST on buying a resale property. GST has made it difficult for builders to sell their projects. It is therefore in the best interest of the builder to minimise the impact of GST on the buyers, otherwise buyers will prefer resale properties.

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