Hi All,

Could anyone tell me what is the latest on ST&VAT?

My possession is due in December, during registration builder told me that you only have to give cheque for ST &VAT. he will only take out the money if the taxes are applicable, but now at the time of possession he is demanding the amount of ST & VAT.

In my agreement he has clearly mentioned if any taxes are applicable by the government then only buyer has to pay that.

But As per my knowledge the matter is still sub-judicial, court has stayed the order of collecting the ST&VAT and These taxes are not applicable as of now.

Please can anyone tell me if builder is legally eligible to collect the ST&VAT,Where it is still not applicable ?


Thanks!
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  • Originally Posted by cha_1981
    Hi All,

    This weekend I had a meeting with my builder on ST. He is not ready to do any sort of underwriting but instead he is demanding the blank dated cheque from me on service tax. This is just being taken for getting "CONSUMER IN CONFIDENCE" as per him. Also he mentioned, he will deposit once the judgement arrives and will inform you well in advance.

    Can someone tell me does MSEB,society formation,maintenance will comes
    under service tax?

    Also I am planning to tweak my signature on cheque lil bit before giving, so bank will call me for some verification before depositing the cheque? Can I safely play this game?

    Thanks,
    Cha


    Cha, I guess, Bank will not call you for verification or so...instead they'll charge you for cheque not honored.... just get this confirmed first...
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  • Originally Posted by abhi2509
    Cha, I guess, Bank will not call you for verification or so...instead they'll charge you for cheque not honored.... just get this confirmed first...


    Yes...I also think this will happen..u will be charged...better get info from bank about cheque bounce due to signature...

    Anyways, Jitu sir, any links or anything related to the news..
    Havent heard from u..
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  • VAT to pay or not to pay? is the question

    Today I spoke to my builder for my ready possesion flat. He earlier requested me the cheque for 1% of the agreement amount which will have his (construction company) name on it.
    I asked him about the receipt for the same, the story that was told me was like this. He said they are printing some new "receipt books" for VAT and before encashing the cheque they will give the receipt which can be shown to the income tax dept. He further said that the VAT money will be deposited to the govt account.
    Is this is correct process?
    My situation is I have paid all the amount for the flat only VAT portion is ramaining, I wont get possesion without it being paid.
    Can the experts please comment on the situation.
    thanks
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  • Originally Posted by santelon
    Today I spoke to my builder for my ready possesion flat. He earlier requested me the cheque for 1% of the agreement amount which will have his (construction company) name on it.
    I asked him about the receipt for the same, the story that was told me was like this. He said they are printing some new "receipt books" for VAT and before encashing the cheque they will give the receipt which can be shown to the income tax dept. He further said that the VAT money will be deposited to the govt account.
    Is this is correct process?
    My situation is I have paid all the amount for the flat only VAT portion is ramaining, I wont get possesion without it being paid.
    Can the experts please comment on the situation.
    thanks

    Dear santelon,
    The above process is right. VAT is applicable from 1st April 2010 to sale of flat for under construction as well as ready possession.
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  • Originally Posted by amitdejavu24

    Anyways, Jitu sir, any links or anything related to the news..
    Havent heard from u..

    Dear amitdejavu,
    Still haven't received any sound info about Supreme Court order regarding VAT. Will update soon.
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  • One of my neighbour who was promised by the builder at the time of taking cheque on ST, that they will call them before depositing the cheque and it will be deposited once ST will come into practice.

    He fall into trap of it and pass the cheque to them.The builder yesterday encashed the cheque and now told different story that we told you we will encashed it immediately.

    I think what the builder has done is illegal, so what can a customer can do in this case? Also builder is not giving possession until we pay service tax to him? What should we do?

    Will appreciate your help in this matter.

    Cheers,
    Cha
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  • Originally Posted by cha_1981
    One of my neighbour who was promised by the builder at the time of taking cheque on ST, that they will call them before depositing the cheque and it will be deposited once ST will come into practice.

    He fall into trap of it and pass the cheque to them.The builder yesterday encashed the cheque and now told different story that we told you we will encashed it immediately.

    I think what the builder has done is illegal, so what can a customer can do in this case? Also builder is not giving possession until we pay service tax to him? What should we do?

    Will appreciate your help in this matter.

    Cheers,
    Cha


    1st step - Expose the builde name here. Atleast it will benefit others (already booked or planning to book with same builder).
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  • Originally Posted by jigarshah
    1st step - Expose the builde name here. Atleast it will benefit others (already booked or planning to book with same builder).

    One of such builder as said in other post is Mittal who has projects which start with the name 'Sun' prefixed. As one of my friends' relative has bought a flat from him, know how he tricked buyers. He too took cheques & encashed them without the knowledge of the buyers:bab (45):. He is not giving any receipts either . And those who are not willing to pay were not getting possession.
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  • The builder is BK Jhala.He has few projects on Pune-solapur road and handewadi road.

    Apart from the ST issue the builder sounds to be good in terms of quality of construction, meeting timeliness of the Project etc.

    Anyway, what we can do from ourside to prevent giving advance cheque for ST and get possession?

    Expert advice.

    Cheers,
    Cha
    CommentQuote
  • Originally Posted by cha_1981
    The builder is BK Jhala.He has few projects on Pune-solapur road and handewadi road.

    Apart from the ST issue the builder sounds to be good in terms of quality of construction, meeting timeliness of the Project etc.

    Anyway, what we can do from ourside to prevent giving advance cheque for ST and get possession?

    Expert advice.

    Cheers,
    Cha

    You can give a cheque to the builder, take possession, pay to the bank & issue STOP CHEQUE. So, even if the builder tries to deposit, the bank won't accept it:bab (34):.
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  • That's looks good suggestion.Will try to take this route only.

    Thanks,
    Cha
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  • Do we need to pay ST on amount disbursed on 30th June 2010?

    Hi,

    As mentioned in this mail thread and on some sites, Buyer has to pay ST on the amount given to builder on or after 1 July 2010.

    In following case 1st disbursement from BANK (of Amount X) i.e cheque date is 30th June 2010 and builder got cheque on 6th July 2010. I checked in my Home loan account,that on 30th June 2010 that Rs.X amount is debited also one day interest was charged on same.
    So in this case do i have pay ST on the X amount disbursed by bank?
    Also which date is considered for ST, "Date on cheque" or the Date on which builder received the cheque/ or encashed to builder's account.

    Thanks in Advance..
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  • Originally Posted by Jitu_Sir
    Dear amitdejavu,
    Still haven't received any sound info about Supreme Court order regarding VAT. Will update soon.


    Jitu_Sir, any further updates on this? It seems many of forum users need this info desperately...
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  • Originally Posted by abhi2509
    Jitu_Sir, any further updates on this? It seems many of forum users need this info desperately...


    Builder is saying to give Service Tax 2.57% too. He is saying result has come out and we need to pay it. :(

    Please let me know if this is true?
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  • Originally Posted by realacres
    You can give a cheque to the builder, take possession, pay to the bank & issue STOP CHEQUE. So, even if the builder tries to deposit, the bank won't accept it:bab (34):.


    Builders are not fools. They will not give possession until the cheque gets cleared.
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