Q: My name is Varsha, I have bought a flat in Tiera "A" wing in Sept 2009 and registered in the same month. Till today the construction has reached only the 11th floor and is awaiting permissions. Plz shed some light on the real causes of such a big delay. Also I have received a letter from Lodha about 5% VAT and it is to be paid within 15 days of the receipt of the letter or else it will attract some additional interest. Although we registered in Sept 2009 but had made very little payments until march 2010 (after which the VAT was slashed to 1%). Do we still have to pay the 5% VAT or should it be charged as and how the construction progresses? (like the service tax)
Hey Raj, Brilliant point so well explained by you. This surely makes the point clear for most of us. Let me also take the opportunity to share a thought that, LODHA is just playing on the psyche of the purchaser by sending him demand with interest on delayed payment, legal notices for cancellation (thast a joke coz they are illegal). So please do not fall prey to these tricks, just tell them u will not pay, period. Also note they can charge interest only from the time of layout plan approval and Construction Clearance Permission date (for your floor), whichever is later. So most of their calculations and demand letters can be conviniently ignored.
Hope this helps. So stop paying completely, till they have permissions for the entire building documented and sent to you.
Hi all, I hope this will help you very much. If you are the owner of any apartment in Lodha Casa Univis project then you can join the owners group of this project and discuss with other owners/residents of the project in the group. To join click Join Owners Group. And if interested you can ask other buyers to join the group and share the platform.
Hi Raj Mechant, if we do not pay them then they are sure to charge this 18% as they have raised a demand. Here however illegitimate this demand may be but as a buyer i m suppose to honor a builder's demand. Hence yes, i am in agreement that we should hold onto the MVAT but we need to ensure for how long. I have another 2 weeks to go based on their demand letter.
Therefore deal registered after that date the mvat is 1% and that is crystal clear. What is not clear is how much is due for deal registered prior to that date. The matter is still in court for clarity on that matter. It is my beleif that Lodha is wanting to collect the higher amount and use that money until they are forced to issue a refund and that too may not happen. I would urge everyone to contact a tax expert for advice on this issue before you pay a penny to the builder for this tax.
Varsha, i am not going to pay the VAT as per their demand of 5 % which i am covinced is incorrect. I have reviewd the link that Lodha himself is touting in trying to collect the tax and it is clear that prior to 1-4-2010 the tax was 5% however only on the actual materials used in the construction, not the entire agreement value. There were a lot of things that needed to be deducted from the contract price such as the land value cost of the labor etc before arriving at the true cost of the materials in order to get to the taxable value. This process become very confusing for both the tax payer and the tax collecter, therefore on 1-4-2010 the courts ruled that the tax would be 1% flat on the entire value of the contract.
Hello Varsha, VAT on flats registered between 20/6/2006 to 31/3/2010 must be paid as directed by builder. After April 2010, VAT under 1% composition is followed. Before April 2012, service tax is 2.575%.
Hi Varsha, there are lots of discussion happening regarding this and there is a lot of confusion around. I think we need to still give at least another week to see if there is some clarity available.