VAT Payment Notice from Builder for Flat

[rb0043596]

Hi All,

Today I have received VAT payment notice, altogether a new thing which builder asking us to pay. has anyone received the same from builder? can anyone help me to understand why they are asking and do we really need to pay?

regards
Rahul

[naveenarichwal]

VAT Charge on Real Estate is a decision of The Government.
Just like charging Enhanced EDC.
But the Government has taken decision that this VAT will be Charged retrospectively from 2010.
Owners who have done registry already may be spared till now from this loot by the government.

The matter of VAT on Real Estate is sub-judice , hence the builders are asking Bank Guarantee Bond.
Its the decision of Government to Charge VAT & not of the Builder.

Similar to the Restaurant Bill which shows VAT of 13.13%.

[rb0043596]

Hi Naveen,

Thank you,

it means that the owners who have not done the registry yet, only they have to pay the VAT.
any information at what rate they are charging.

[umesh.prabhakar1965@rediffmail.com]

Rahul ji,

The H-VAT is applicable on residents who have executed the conveyance deed. But it is impossible task to recover the H-VAT from such dwellers/Flat owners.

The H-VAT is recoverable@4.2% on the total sales considerations of FLAT.

I have heard that colonizers are proceeding before court against Government of Haryana's notification. However, we as a sufferers can also stand before the court.

[naveenarichwal]

Enclosed :
Notification of Govt of Haryana regarding H VAT

http://www.haryanatax.com/VAT/Notificat ... 7.7.15.pdf

[kgrana]

Hi Naveen , Umesh
With the notification, it seems there are a lot of exclusions and charging VAT on total amount is not
appropriate. Omaxe is asking VAT @3.94% on total value . Do you have any contacts in the department
to clarify how it should be ? Also, if the agreement is done before 17-05-2010 and the amount paid before
that date is excluded.
Regards
Krishan

[umesh.prabhakar1965@rediffmail.com]

Dear Kishan ji,

You are absolutely right. Hon'ble High court has excluded all the items like land cost, Labour cost, and all the items under service tax, EDC,IDC or EEDC.
But the movable items are @ 4.5%,5.5%,12.5% or more. Therefore movable items like cement,steel etc are levied at their rates.

Or else if colonizers get themselves registered as composite developers they will be charged @1% on total sales considerations. As of now DLF,VATIKA and Eldeco in Haryana have registered as "Composite Developers".

The contract as defined as contract between colonizer & contractor of developer company.

This is for the information.

[rayvk]

Dear All,

Please find below a link that helps in shedding light on the HVAT issue;
http://taxguru.in/goods-and-service-tax ... itV2f.dpuf

[rayvk]

http://taxguru.in/goods-and-service-tax ... ement.html

This is the latest article which gives a buildup (if one wants to understand the issue in depth)

[sunilusa]

Hi All,

In any case VAT should be on sale. OMAXE has asked VAT in advance before the registry for OMAXE SPA. Already paid 100% of the payment and waiting for their reply to confirm the date for registry. I live outside India. OMAXE is also asking stamp paper money. I told them that once I will be in India, I will buy the stamp paper but not reply.

Is anyone else in the same boat.

Please advise and provide help/suggestions.

Regards
Sunil

[smihassan]

Hi Sunil,

I also have my flat in Omaxe Spa Village in the Signature Tower
The cost of Stamp paper has to be borne by you. Normally the builders ask for the money for the stamp paper to ease you of the botheration for getting one. It is suggested that you ask them for the total break up of diff expenses involved for the total process.
Based on your convinience and location you have a choice either to arrange this on your own or to depend on the builder.

Regards,
Hassan.

[sunilusa]

Thanks for the info.
I understand that I need to buy stamp paper myself.
Are we suppose to pay VAT on full price? OMAXE has asked VAT on full price - ifms(80,000)

Please advise.

Regards
Sunil

[smihassan]

Sunil,
Its up to you either you arrange for the stamp paper at your end or pay to builder to arrange the same for you. If you ask the builder to arrange the stamp paper they will ask you to deposit the required money (DD or Cash) with them so that they buy the stamp paper on your behalf.
VAT is to be paid as per rule in this regard.
It is suggested that you consult some lawyer who is involved with the real estate processes and can guide you properly.
There are certain things that are excluded and such costs are not liable for VAT.
Are you on Omaxe Group on Whatsapp?

Regards,
Hassan.

[sunilusa]

Yes, I sent the request to be added to Omaxe group in WhatsAPP

[sunilusa]

Has anybody got possession from Aspen D tower? Is this tower ready for possession?

Omaxe has taken all the money saying flat is ready for registry, and still not giving me the date for registry after more than a month.

I am not in India so not able to visit the site. Is flat ready not sure.

Shilpa from Omaxe told me that she had sent the file to their legal department and it will take 20-25 days for everything to be ready after taking all the money. I did not have choice other than paying rest of the money (5% balance and lot of other charges, VAT and Stamp paper fees).

Omaxe is charging interest on late payments(only by days other than EEDC) and paying very little delayed penalty.

Any information will be helpful.


Thanks and regards
Sunil Anand