Hi Friends,

Yesterday I have got demand letter from builder for VAT 1% of agreement value of my flat. I have purchased a flat in Sapphire Park (Pride Purple Group) in May 2010.

Is the final decision on VAT is out? or Still any litigation/decision pending in court?
Also can any one bought home after 1st April 2010, have your builder demanding VAT? If yes, then in whose name the VAT should be paid? builders or govt?

Thanks in advance!

Regards,
Datta
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  • Ah, I am fed up of the "number" of grey areas in Real Estate in India.Everybody is looking to suck in - the PMC,the Central Govt,the builder, the local furniture contractor,even the society and neighbors !

    Poor Indian Consumer !

    I really want to see the future - whats the situation of the same in 2017, whether it will be the same - OR - things would have changed -- FOR GOOD or FOR BAD !
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  • Originally Posted by pcpune
    Ah, I am fed up of the "number" of grey areas in Real Estate in India.Everybody is looking to suck in - the PMC,the Central Govt,the builder, the local furniture contractor,even the society and neighbors !

    Poor Indian Consumer !

    I really want to see the future - whats the situation of the same in 2017, whether it will be the same - OR - things would have changed -- FOR GOOD or FOR BAD !


    Correct. The list is endless

    PMC - property tax
    State Govt - VAT, Stamp duty , registration
    Central Govt - Service tax
    Ministers - from builders
    Builder - well known
    broker - well known
    Interior designer
    Electrician - in case of changes, light fittings
    Painter
    Bathroom accessories suppliers
    Carpenter, furniture suppliers
    Curtain maker
    mattress supplier
    etc etc

    When you decide to buy house, you are going to contribute for livelihood of these people.
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  • Hi all,

    Today i have received a demand letter from Lodha for the payment of MVAT / VAT of 5 %.

    Agreement Registration Date : 30th Jan 2010

    Please let me know whether Buyer need to pay this MVAT of 5 % or Builder need to pay this, since while purchasing this flat in 2009, builder didn't highlghted this part to me. I can't see its been mentioned anywhere in the documents provided by Builder in 2009.

    Now suddenly builder has requested this amount. Could you please share view on this?


    Regards,
    Dines
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  • Originally Posted by dinesh.sawant213
    Hi all,

    Today i have received a demand letter from Lodha for the payment of MVAT / VAT of 5 %.

    Agreement Registration Date : 30th Jan 2010

    Please let me know whether Buyer need to pay this MVAT of 5 % or Builder need to pay this, since while purchasing this flat in 2009, builder didn't highlghted this part to me. I can't see its been mentioned anywhere in the documents provided by Builder in 2009.

    Now suddenly builder has requested this amount. Could you please share view on this?


    Regards,
    Dines


    AFAIK, there is only VAT of 1% of agreement value which is to be paid at the time of registration to the builder. And he is supposed to give a separate receipt for it. From where has this value of 5% appeared?? :bab (38):
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  • Originally Posted by Jitu_Sir
    Dear hemantdesh,
    One should get the receipt specifying against VAT.

    One of my friend's relative has booked a flat in Mittal Group project (Sun) & the builder is not ready to mention Service Tax on the receipt, infact he is not issuing any receipts at first place. And without paying this amount, the builder is not giving the possession even when entire amount according to the agreement + cash for legal charges etc. have been paid. What should he do now??:bab (38):
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  • Originally Posted by dinesh.sawant213
    Hi all,

    Today i have received a demand letter from Lodha for the payment of MVAT / VAT of 5 %.

    Agreement Registration Date : 30th Jan 2010

    Please let me know whether Buyer need to pay this MVAT of 5 % or Builder need to pay this, since while purchasing this flat in 2009, builder didn't highlghted this part to me. I can't see its been mentioned anywhere in the documents provided by Builder in 2009.

    Now suddenly builder has requested this amount. Could you please share view on this?


    Regards,
    Dines

    You are not required to pay this amount. This Lodha chap, I think it is that useless Abhisheck Lodha project. Seems as Lodha has negative cash flows, he is milking his buyers under various PRIVATE TAXES:bab (45):.

    * Ask the builder to furbish the GR (Govt Resolution) alongwith circular number for 5% VAT & then see the fun:D.
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  • I have booked flat before 1st April 2010 and registered after 1st April 2010. Then how much VAT (%) I have to pay?
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  • Originally Posted by pmmk53
    I have booked flat before 1st April 2010 and registered after 1st April 2010. Then how much VAT (%) I have to pay?



    you will have to pay only 1 % VAT as 5 % is only applicable to properties registered between Mar 2006 and Apr 2010.:D
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  • Originally Posted by raptorminty
    you will have to pay only 1 % VAT as 5 % is only applicable to properties registered between Mar 2006 and Apr 2010.:D



    Hello

    i am a little confused. 15 days ago i got one letter from builder about VAT 5%. I have registered a flat on 23 sept 2009 in pune. how much VAT should i pay to the builder plz let me know asap

    Thank you.
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  • Originally Posted by shonu123
    Hello

    i am a little confused. 15 days ago i got one letter from builder about VAT 5%. I have registered a flat on 23 sept 2009 in pune. how much VAT should i pay to the builder plz let me know asap

    Thank you.


    All properties registered from June 2006 to Apr 2010 will have to pay 5% tax, any delay in payment after 31st Aug 2012 will cause a Interest of 1.5% per month or 15% per annum.
    CommentQuote
  • Originally Posted by shonu123
    Hello

    i am a little confused. 15 days ago i got one letter from builder about VAT 5%. I have registered a flat on 23 sept 2009 in pune. how much VAT should i pay to the builder plz let me know asap

    Thank you.


    The builder will give you exact amount, for eg. in our society for a 1000 sq ft flat which was purchased at 2100 per sq ft its comming around 1.07 lacs INR
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  • Originally Posted by raptorminty
    All properties registered from June 2006 to Apr 2010 will have to pay 5% tax, any delay in payment after 31st Aug 2012 will cause a Interest of 1.5% per month or 15% per annum.


    Is there any interest if the VAT is paid before 31 Aug 2012 ?
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  • Originally Posted by HemantDesh
    Is there any interest if the VAT is paid before 31 Aug 2012 ?


    Nope no interest before 31st Aug 2012, its only after that. BTW check out this thread too...lots of imp info on Pg.3 by Jitu_Sir.

    http://www.indianrealestateforum.com/pune/t-5%25-vat-agreement-value-int-%4015%25-pa-u-c-property-bought-betn-20-06-06-31-03-10-a-38502.html
    CommentQuote
  • Originally Posted by raptorminty
    All properties registered from June 2006 to Apr 2010 will have to pay 5% tax, any delay in payment after 31st Aug 2012 will cause a Interest of 1.5% per month or 15% per annum.



    There is no any such notice or circular how much percentage you have to pay,neither it is 5% nor 1%...as per penalty concern builder has to pay penalty to Govt not the buyer.....
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  • Originally Posted by RED2LIGHT
    There is no any such notice or circular how much percentage you have to pay,neither it is 5% nor 1%...as per penalty concern builder has to pay penalty to Govt not the buyer.....



    Same topic discussion is going on -->
    http://www.indianrealestateforum.com/pune/t-5%25-vat-agreement-value-int-%4015%25-pa-u-c-property-bought-betn-20-06-06-31-03-10-a-38502-page3.html

    Please join
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