Complaint Details

Status	:	Closed
Complaint No	:	0002496/2012
Category	:	Real Estate
Date	:	31-10-2012
Subject Line	:	Incorrect MVAT payment
Complainant	:	Tanveer Munshi
Address	:	Lodha Aqua, Pacifis A 602, Opp. Thakur Mall, Mira Road (E)
Complainee	:	Lodha (COWTOWN LAND DEVELOPMENT PVT. LTD.)
Address	:	Lodha Excelus, Apollo Mills Compound, N M Joshi Marg, Mahalaxmi,

Complaint Details
I have registered my flat (Pacifis A 602, Lodha Aqua) on 30th April 2008. Till date I was not made aware by Lodha on the MVAT payment and only on 20th Sep he has send me a letter stating that I have to pay 3.70% MVAT amounting to Rs. 327883.

The MVAT calculated under composite and regular scheme is as mentioned below

A. MVAT Percentage Calculation for the Project Lodha Aqua:

a) Effective MVAT % calculated under Regular Scheme:


MVAT % applicable on the total agreement value after applicable deductions (Note: Average VAT rate on materials – 9.19 %) = 5.34 %

Less setoff calculated for the project, as a percentage of total agreement value = 1.62 %

Effective MVAT % payable after passing on the benefit of setoff = 3.72%


b) Effective MVAT % calculated under 5% Composition Scheme:


MVAT % applicable on the total agreement value (after taking subcontractor deduction) = 4.59 %

Setoff calculated for the project, as a percentage of total agreement value= 0.89 %

Effective MVAT % payable by buyer to Lodha, after passing on the benefit of setoff = 3.70 %

Lower of a & b = 3.70%

MVAT % payable by customers of the project = 3.70 %

The breakup of how 1.62% and 0.89% (in a and b resp) was derived was not provided. Though I had sent numerous mails to Lodha they have clearly mentioned "Please be informed that we will not be able to share any further details with regards to MVAT calculation than what we already have in our communication" (as attached below).

Would like to understand

a) Am i still liable to pay 3.70% if the Lodha is not ready to share the details, nor willing to meet. How has the builder arrived at 1.62% and 0.89%, if I can get the actuals ?

b) How much %age am I actually liable to pay ? If Lodha has already paid the MVAT to the government and if I can get the receipts of the same to determine how much I am actually eligible to pay ?

c) The liability to pay VAT is on developer. It is not contigent on collection by developer, so am I liable to pay first to the builder? Can he also charge me interest and penalty if i don't pay them first?
d) What is the repurcussion if I do not pay VAT at all, considering that builder did not inform me while buying in Apr 2008 that I am eligible for MVAT till Sep 2012.

Look forward for your immediate response.

Replies