Team Tata Care Tata Housing Development Co. Ltd. Mumbai Dear Sir/Madam, Ref.

: Your demand letter dated 10th, October, 2012 towards payment of MVAT for flat No. M 38 003 in Project Subh Griha Boisar. This has reference to your above referred letter. The agreement value of my flat is Rs. 6.97,500 out of which I have paid Rs. 6,62,625. You have raised a demand of Rs. 33,132 as MVAT payable by me to you. Though, in your demand letter you have not mentioned as to how you have arrived at this figure, my calculations show that you have charge me 5% on Rs. 6,62,625, which comes to Rs. 33,131.25 i.e. rounded off to Rs. 33,132. Your understanding that the Hon'ble Bombay High Court in the case of Maharashtra Chamber of Housing Industry vs. The State of Maharashtra (W.P. No. 2022 of 2007) has upheld the levy of 5% VAT on the agreement value is erroneous. The Hon'ble Court has only upheld the powers of the State to levy VAT on the 'Works Contract' involved in the contract of sale of a flat by the builder/ developer. The Court has further observed that the Assessing Officer should assess the Works Contract so involved. Your further understanding that you have to pay VAT at the rate of 5% is also erroneous. There are different options available under the MVAT Act, 2002 r/w. MVAT Rules, 2005 of payment of VAT on such Works Contract. We have consulted the experts in the field and have been informed that your liability to pay VAT would not exceed 0.5%, if you follow Section 6 of the MVAT Act, 2006 r/w. Rule 58 and Rule 58(1A) of the MVAT Rules, 2005. Kindly note you are entitled to collect tax which is not only legally payable, but also legitimately payable. Your reliance to the Trade Circular No. 14T of 2012 is also misplaced. The Circular, on the contrary, informs you the different options of payment of tax. Kindly further note, the said circular along with the different notifications issued by the Government of Maharashtra, right since 2007, have also been challenged before the Bombay High Court by Marathi Bandhkam Vyawsayik Association vs. State of Maharashtra (W.P. No. 8121 of 2012 dated 26/08/2012).

Be further informed that the Consumer Forums have also approached the Bombay High Court (Aurangabad Bench and Bombay Bench)and have also filed SLP in Supreme Court due to such draconian demand of 5% VAT. Subsequently. Sales Tax Commissioner, Maharashtra has issued Trade circular No. 18 T of 2012 dated 26th of September 2012. In the meantime, Builders Association of India (BAI) in addition to filing a Special Leave Petition in Supreme Court of India challenging the order of Mumbai High Court in Writ Petition filed by MCHI, has also filed a Writ Petition in the Bombay High Court challenging the Trade circular no.14T of 2012 dated 6th August 2012 and Trade Circular no.18T of 2012 dated 26th September 2012 issued by the Commissioner of Sales Tax, Maharashtra State under the provisions of Maharashtra Value Added Tax Act 2002. These circulars direct the members of BAI / developers to pay the tax for the period 20-062006 to 31-03-2012 under any of the 3 methods namely Composition Scheme; Actual expenses method or Standard Deduction method and discharge his tax liability accordingly. BAI feels that the three mechanisms provided vide these circulars are not proper as the tax is leviable on Transfer of Property involved in the execution of works contract as goods or in any other form and not on entire Agreement value of Sale of Flat as per section 6 of the MVAT Act and Rule 58 of the MVAT Rules. In view of all the above, you are advised to get your VAT liability properly assessed and thereafter issue demand letter. Thanking you, Yours Faithfully,

SANJEEVA MADHUSUDAN GURURAJARAO(Cell : +91 9820517064) 16, Chintamani 2, Mithbunder road Chandani Koliwada Thane (E) 400603

From: Name.. Address Date

To, M/s Address.. Subject: Your Notice/letter for demand of VAT

Dear Sir, I/We have received your notice/letter dated . For payment of VAT amount against flat No. in your .. project. In this regard I/We have to write to you as under: The matter of VAT on Flat is sub-judice with Hon. High Court and till such time that the hon. Court decides the matter, I have no intention to pay tax money.

Your demand of VAT money is not in proper form. Please issue a tax invoice or bill, as the case may be, as required under the MVAT Act. On receipt of your invoice/bill, I will respond appropriately to same. Further as promised in the registered agreement you have do the following things 1. 2. Formation of society Conveyance in favour of society

3. Return of balance amount after formation of society (as per Grahak Panchayat, Pune and as per Commissioner of co-op society the charges for society formation are just Rs500/per member hence you return the balance amount with 18% interest) 4. As per the MSEDC guidelines and as per the information received from Grahak Panchayat Pune the electricity meter charges are just Rs3,000 to Rs10,000 per flat and you have collected Rs. Which are very high. Hence please give receipts of payments made to MSEDC and pay the balance amount with 18% interest. 5. Also as per Flat Ownership Act 1963, you have to form the society within four months from date of registration of the flat agreements by the 60% consumers. But you have not formed the same. And also you have not made conveyance in favour of the society. Hence you are requested to do the needful within 30 days from receipt of this notice otherwise we will take appropriate action against you at your cost. 6. Also as per the promise made in the agreement you have not provided amenities. Hence you please provide it. 7. Further as MOFA 1963 you are not to collect the parking charges but you have collected illegally the parking charges of Rs per head. Please return the same within 30 days with 18% interest.

We are giving you 30 days time for above all facts and if you fail to comply then we will take appropriate action against you at your cost.

Thanking you

Yours faithfully Sign