(Bangalore property|apartments|flats|lands for sale in Bangalore)
Even as the Sales Tax Department
is computing the Value Added Tax (VAT) paid by 10,600 odd Registered Dealers or
Developers, a group of Chartered Accountants, who have set up a Forum of
aggrieved Flat Buyers, is now asking them to demand VAT refund from Developers.
The Forum, which
operates through a website,
have asked all the 450 Buyers, who have registered at the website to ask for a
debit note or a tax invoice and receipt confirms that the Developer has paid
tax to the Government against your flat and will further help you get the
refund in the future.
The Sales Tax Department
is still computing the total VAT amount-it hopes to collect more than Rs 1,000
Crore-paid by the Registered Developers. According to the Official Sources,
while majority of big Developers have paid VAT, several small Developers have
shown nil returns. Dealers have to file sales tax returns every three months.The Department is now in the process of verifying the reason as to why some
Developers have shown nil returns.
Incidentally, even
before a Buyer asks for a refund, Gundecha Builders, a suburban Developer has
decided to refund the balance from the total 5% of the agreement value, they
have collected from their Customers as VAT.
According to the
Chairman of the Gundecha Builders, recently wrote to his 350-odd Flat Buyers asking from his Office or from the Bank for the excess VAT amount. Gundecha,
which has computed VAT between 1% and 3.5% of the agreement value, will refund
roughly Rs. 3 Crore to the Customers. Barring very few Buyers, who have not
paid, the majority of my Customers paid the VAT amount in the form of escrow
and Bank Guarantees. Now, that they have paid that VAT to the Government, they
see no reason to hold on the excess money.
According to the another leading Developer, they too have plans to refund the balance amount to his
Customers, who have paid in Bank Guarantees and escrow in a few days.But, they
still will tell their Customers that though they are refunding the money, they
will have to pay in case the Sales Tax Department comes up with an another
computation and they do not want any more headaches.
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