Update after visiting Paramount Office on 6th Dec 2012
Amit Kumar
Hello Everyone,
I also received the demand letter along with Interest and Service tax even though I made the payment. So I thought there may be some mistake in calculation so I went to Paramount Office today and spent approx 4hrs. Welcome to Indian Real State Market. Now they've started executing their agreement which is one sided. I must say it's a beginning. Here is the detail.
Why Service Tax?
As per their theory Additional cost (apart from basic cost) they suppose to charge 12+% as service tax. But till now they've charged +/-3%.
<My Opinion> : If it's as per law then we should pay this amount. But they should send us a letter with calculation. Right now we are not sure whether they've included the interest on the service tax as well. We should check from other builder or some tax expert.
Why Interest?
One thing I understand even you made the payment the day they issued demand letter you've to pay the interest. Possible reason for your Interest
1. After the introduction of service tax their was some amount was getting adjusted in every demand on behalf of service tax. So you are paying amount as mention in demand letter but some amount is getting carry forward which you are not aware. So you've to pay the interest
2 If you booked the flat in beginning of 2010 and they were busy in finding customer and keeping the customer by paying 1 lac or 2 lac (not entire 10%) then also you've to pay the tax because as per their agreement at the time of booking you should pay 10%. Now they are going by the book not agreeing to any verbal promises made by their employee.
3. If you delayed the payment by few days just because when they called for payment, you asked for certain detail like approved plan, possession date, etc. You waited for few weeks and finally you made the payment with few days delay and they promised soon they'll provide you req info.
Now they are executing Section Payment point 1 mention in allotment letter .
<My Opinion> : Informally I check with one of their employee and he mentioned It's a stunt to earn extra bucks. Their bosses know few customer will create issue and after a month they will take money from all.
Couple of points which they mentioned in agreement if they'll execute then our dream home will become hell. For e.g. [Point 31] The Company reserve the right to lease/hire top roof ....... , [Point 14]Common area and amenities shall vest solely with company which shall have sole right and authority to deal and use in any manner, [35] Explore the right of terrace in-case of change in FAR (I also heard Noida Authority is increasing FAR on project to project basis) ......., Many more such points
At high level, I've already checked with one lawyer (belong to Delhi) and as per his advice we only suppose to pay the amount which mentioned in Demand letter . Since they didn't mentioned interest in demand letter so we are not obliged to pay. They can't wake up on one fine day and ask for interest. So he suggested to file a complaint in Consumer forum.
Old school of thought is going court is a hassle and builder has their own lawyer and who'll waste time with them. Which is true up to an extent but builder is taking advantage of this. We can also keep a lawyer and person to do everything and cost will be very less. And I think we need them till the time we are not getting possession. It will be ugly with the time. It's just a beginning.
I guess if we kept quite and do nothing then they will definitely start executing other agreement terms and conditions. We all home owner (at least, not investor) should come and meet on Sat @ 11:00 AM (on-time) to set the record straight. If you are not free then send some one on your behalf. We've to show good number.
1. Any interest should be applicable from now on because it never mentioned in demand letter.
2. Possession date, they've not given anywhere in written.
3. A fresh Demand letter with current balance (without interest) and break-up of service tax and calculation
I think the best strategy would be to identify some core member and meet with their MD on above three point. There is no point of talking with staff on individual case. We need to talk some one who is having authority. Good thing is this whole thing is related with payment so if there is no agreement we can file a complaint in consumer forum and work at site will continue Anyway as per current status possession will happen 1 year from now on. Along with this issue we'll also put pressure for timely possession as well.
Most importantly we should fight for principle. If builder is right we should pay otherwise not. If we do nothing then we are letting us rob and we shouldn't complain for this. Because this is something we've chosen.
Every one can share their opinion and thought on this. Hope above information will clarify some of your doubt and have a strategy in place before meeting with Paramount.
Thanks to Atin for bringing everyone together and initiating this thread
Regards
AMIT KUMAR