Heard that ATS is coming up with their Residential project in sec 109 in 14 acres , next to atharva.....

Anybody having any more info on this....????
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  • Originally Posted by vinaybhatia
    Hi Kashmiri, I did check with Manager(Sales and marketing) regarding service tax. He also told the same thing which other members have updated before. Builder can't show parking charges in agreement because of some ruling and have to show it as part of BSP only. Whatever is shown in BSP amount will qualify for service tax and can't be avoided by builder. Builder is paying this tax to Govt and is not going to gain anything out of this.

    Hi Vinay,

    Thanks for the update.

    I am of the opinion that if ATS includes parking charges to save them in view of SC judgement then in that case investor has to pay @3.09% on account of service tax. However this(service tax) charges is not applicable on parking charges as per present condition of INR 6 Lac for parking charges.

    I was just wondering why poor investor need to pay these charges and as rightly pointed out by Bewoluf this should be absorbed by ATS.

    It is also highlighted that ATS has already given allotment letter and BBA etc. based on parking charges INR 6 Lac extra and investor are losing on account of this change.

    Any views, please.

    Regards
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  • Hi Guys,

    So is it correct to assume that all the members are paying service tax on the Parking Charges of Rs. 6.00 which is part of the first demand (after booking amount). Pls confirm.
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  • Just FYI for All

    Satya Hermitage 103 also demanded 4L(2 parkings) during their pre-launch but by the time we reached BBA (even before that) they included it in BSP thus increasing BSP by couple of 200 or so....

    As a end user ,

    Advantage
    1) THe money which was to be paid upfront is divided into installments...so make a life simpler and definitely give us a 4% bank return if money parked in bank or save us 10% interest if it was to be procured by bank loan

    Disadvantage
    1) We need to pay service tax on Parking
    2) The price will be included in BSP hence during the registry we pay 6-7% changes on increased amount...
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  • This is clever move by the builder.According to supreme court ruling parking belongs to common area and can not be sold.
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  • Do all builders follow this approach reg common area selling...do they charge EDC/IDC on actual built up area which they deposit/pay to govt.....as per my understanding answer is BIG NO.
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  • I agree Kashmiri, Since this was not told to investors before, ATS should absorb these charges of Rs 18540.

    Looks like many other builders are following the same practice of including parking to BSP. As Karan mentioned, there are few positives also with this approach but buyers should know about this before.

    Originally Posted by Kashmiri
    Hi Vinay,

    Thanks for the update.

    I am of the opinion that if ATS includes parking charges to save them in view of SC judgement then in that case investor has to pay @3.09% on account of service tax. However this(service tax) charges is not applicable on parking charges as per present condition of INR 6 Lac for parking charges.

    I was just wondering why poor investor need to pay these charges and as rightly pointed out by Bewoluf this should be absorbed by ATS.

    It is also highlighted that ATS has already given allotment letter and BBA etc. based on parking charges INR 6 Lac extra and investor are losing on account of this change.

    Any views, please.

    Regards
    CommentQuote
  • Originally Posted by vinaybhatia
    I agree Kashmiri, Since this was not told to investors before, ATS should absorb these charges of Rs 18540.

    Looks like many other builders are following the same practice of including parking to BSP. As Karan mentioned, there are few positives also with this approach but buyers should know about this before.


    Yes, I also agree and I shall ask the builder and request others to do the same.
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  • Originally Posted by harpreet_sa
    Yes, I also agree and I shall ask the builder and request others to do the same.


    I call this as fraud. If A and B are agreed as separate amounts, ATS cannot combine and make it as A+B. Fraud 101. Can be challenged in court of law.

    Let us know if they agree to eating the service tax impact. I doubt it.
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  • No you cannot challenge it. service tax is always borne by the person availing the service. the only situation where the builder can be asked to absorb it is where the biilder agrees to bear imcrease in taxes, which no builder does
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  • Originally Posted by lexusnexus
    No you cannot challenge it. service tax is always borne by the person availing the service. the only situation where the builder can be asked to absorb it is where the biilder agrees to bear imcrease in taxes, which no builder does

    I think you are missing the point. The amounts cannot be combined at will by ATS unless specifically stated that BSP includes parking.
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  • Hi Harpreet,

    Let me know the outcome of your discussion with ATS.. even my first payment is falling due in the coming week and I will take up this matter with them as well..


    Originally Posted by harpreet_sa
    Yes, I also agree and I shall ask the builder and request others to do the same.
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  • ATS has increased the BSP for all and included the 6L as part of it. They have specifically called out that 2 parkings will be reserved for the owner.
    Anyone received the updated letter?
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  • Originally Posted by vinaybhatia
    Few other notes that were exchanged during this call.

    1. ATS Triump launch is now planned in June. No confirmation on launch price yet.
    2. ATS is planning another project in Sec 109 that may be launched by end of the year.


    Ye the new one in 109 is again on Chintels land so potentially could be another JV. It will be a little on the rear of the sector.

    Chintel is also planning another residential project in sec 108 in 39 acres after the success it witnessed in Paradiso.
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  • Originally Posted by skhosla
    ATS has increased the BSP for all and included the 6L as part of it. They have specifically called out that 2 parkings will be reserved for the owner.
    Anyone received the updated letter?


    Well just wondering, if they increase the BSP then the amount of payment will be derived from increased BSP on completion of each milestone, thus resulting in more outflow. Effectively means the 6 lac which was scheduled to be paid in the last would be paid alongwith earlier milestones, which is not in benefit of investors.
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  • Originally Posted by skhosla
    ATS has increased the BSP for all and included the 6L as part of it. They have specifically called out that 2 parkings will be reserved for the owner.
    Anyone received the updated letter?


    Originally Posted by harpreet_sa
    Well just wondering, if they increase the BSP then the amount of payment will be derived from increased BSP on completion of each milestone, thus resulting in more outflow. Effectively means the 6 lac which was scheduled to be paid in the last would be paid alongwith earlier milestones, which is not in benefit of investors.


    Indeed. Theres a loss in the following situations,
    1. 6L will be paid upfront along with ST with the other installments so loss of interest on these components.
    2. Service tax will need to be paid on this 6L now.
    3. Registration calculation at the end will include this additional 6L so additional cost.
    4. Govt law of not allowing selling of parking slots does not help the present consumer as builders have simply added the cost to the BSP so no benefit to existing customers. New customers may benefit a little as they may not be told about such additional costs so the BSP's will get a little competitive as the builders won't be able to charge parking amounts as they feel like.

    Moreover, though 2 car parkings will be alloted to every owner, there could turn out more conflicting situations if someone else parks his/her car at another reserved slot since literally the house owner does not own the parking anymore.
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