Heritage Cottages, Sector 89, Faridabad

[SKD]

Hey buddy, Hope things are fine with you.
just wanted to check if you had a chance to visit the site?

Regards,
Anil

[SKD]

Today I've received the following letter from my Builder. Has anyone else received this or similar letter from their builder yet? I'm not sure if they are referring to the same thing (Increased EDC/IDC) or is it some other headache, Please let me know how do i deal with it....


Subject: Service Tax


Dear Sir/Madam,

As you are aware the finance Act 2010 has made changes in the definition of service head Commercial or Industrial Construction Service & Construction of Residential Complex Service. W.E.F 1\7\2010

As per the said amendment in Finance Act 2010 the payment received after 1\7\2010 are taxable after claiming abatement of 75% i.e on 25% we are to pay @ 10.30 which is equal to 2.58% of the total payment received.

As per clause 11 of the Buyer agreement any new levy is to be reimbursed by the Buyer to the developer.

Although we are fighting in the court but to bring to your kind notice that if the levy in held to be good by the courts then you will have to pay the same along with interest for the payment made after 1\7\2010.

The additional cost is due to unavoidable circumstance beyond the control of the developer. We hope you will understand the issue and co-operate with us to provide you the best possible house.

Thanking you we remain,

Sincerely yours,

For Heritage Cottages Pvt, Ltd.

[SKD]

I'm surprised that no one has replied in here yet, Probably because no one has receive such letter or heard of finance Act 2010......I'm wondering how come only my builder is getting such letter from the Government..

Subject: Service Tax


Dear Sir/Madam,

As you are aware the finance Act 2010 has made changes in the definition of service head Commercial or Industrial Construction Service & Construction of Residential Complex Service. W.E.F 1\7\2010

As per the said amendment in Finance Act 2010 the payment received after 1\7\2010 are taxable after claiming abatement of 75% i.e on 25% we are to pay @ 10.30 which is equal to 2.58% of the total payment received.

As per clause 11 of the Buyer agreement any new levy is to be reimbursed by the Buyer to the developer.

Although we are fighting in the court but to bring to your kind notice that if the levy in held to be good by the courts then you will have to pay the same along with interest for the payment made after 1\7\2010.

The additional cost is due to unavoidable circumstance beyond the control of the developer. We hope you will understand the issue and co-operate with us to provide you the best possible house.

Thanking you we remain,

Sincerely yours,

For Heritage Cottages Pvt, Ltd.[/quote]

Even I've bought a Flat in "Ozone Square" Sec 89 and recently i spoke to Praveen Khurana and he says the project will be completed in next 2 years. It has been approx 5 years since the commencement of the project and like you said only 50% work has been completed as of yet.. I serious doubt if they will be able to complete the construction work in 2 years.....He says none of the builders in that area has been able to complete a project...Going by the way talk...I can tell he needs easily 5 more years to finish the work..

Every time i talk to him he blames only the government for not developing the infrastructure in that area, He is been telling about an Express highway and some road which the Govt has apparently started constructing recently....are you aware of it?

I find it hard to believe everything he says, I am away from Delhi and can't personally visit the site to verify that they are actually doing something at the site. By any chance are you located in Delhi?

As per the buyer agreement, he is supposed to pay penalty to the Customers if the house is not handover to client after 3 years of singing up the agreement. He refused to pay by telling some legal jargon.

[kbmalhotra]

I too have received this letter. This is not EDC/IDC but service tax.

There was a news item in the news paper that Govt. has included building construction in the perview of service tax. However, builders are opposing this. But we can not hope from this Govt. Every day the Govt. is bringing new fields within service tax.

Service tax is levied on service portion only.

The builder has perhaps rightly mentioned that 75% is material cost and 25% is the cost of services. So the tax @10.3% on 25% will be about 2.8%.

I think we can not escape. More the delay, more the interest we shall have to bear.

Let,s have openion of others.

[reema11]

Hello All ,

We had taken an apartment with Heritage cottages as well - Block D . We received a letter from them yesterday regarding some tax post 1st Jul 2010 which needs to be paid with interest . Letter stated they are fighting on same in court but if they lose it needs to be paid extra . Any similar request to any of you ?

[reema11]

We have recd. same letter as well . But i guess we dont have to do anything now . It is like a heads up !!

Today I've received the following letter from my Builder. Has anyone else received this or similar letter from their builder yet? I'm not sure if they are referring to the same thing (Increased EDC/IDC) or is it some other headache, Please let me know how do i deal with it....


Subject: Service Tax


Dear Sir/Madam,

As you are aware the finance Act 2010 has made changes in the definition of service head Commercial or Industrial Construction Service & Construction of Residential Complex Service. W.E.F 1\7\2010

As per the said amendment in Finance Act 2010 the payment received after 1\7\2010 are taxable after claiming abatement of 75% i.e on 25% we are to pay @ 10.30 which is equal to 2.58% of the total payment received.

As per clause 11 of the Buyer agreement any new levy is to be reimbursed by the Buyer to the developer.

Although we are fighting in the court but to bring to your kind notice that if the levy in held to be good by the courts then you will have to pay the same along with interest for the payment made after 1\7\2010.

The additional cost is due to unavoidable circumstance beyond the control of the developer. We hope you will understand the issue and co-operate with us to provide you the best possible house.

Thanking you we remain,

Sincerely yours,

For Heritage Cottages Pvt, Ltd.[/quote]

[nbose]

Hi All,

I think everyone is receiving this letter...It seems kind of notification that soon another letter demanding money is following....

We have bought a flat in Block D. I joined this forum to link up with other people who have invested their money in Ozone square....We visited the site last year....the whole area seems to be at the same page ..all projects....planning to visit again after diwali....We had a word with Praveen Khurana few months back and he said completion might be by sept 2012...but i afraid that is also gonna extend ....

Guys, please do update any recent updates about the same...anybody had a word with them or anyone visited the site recently...please share.

[SKD]

They have sent the Recent pics to me by email, i guess those pics are not yet uploaded on the site.

I am willing to share them, please let me know if anyone is interested...let me know your Email id as well.

I tried uploading them here, however it Failed (upload aborted )

[kbmalhotra]

May please note down my mail add.:- bhushankbm@gmail.com

[nbose]

Please forward it to my mail id at bosenibeditastar@gmail.com

[nbose]

Is anybody aware that this project is now under review by LIC and LIC is not issuing any mone for the latest demand letter we received. This review by LIC is there bcoz the construction work is very slow as compared to others
This news is really worrying for me.......

[kbmalhotra]

Ozone square, Heritage cottages. Sector 89.
Visited Ozone square on 8th April,12. There does not seem to be any progress in the work.
External plaster partially has been done on Block A. Rear side of the building is not yet touched. No body was at work on Block A. b & D.
Some work was going on at top floor of Block C. Hardly not more than10 persons were at work. On enquiry, they informed that brick work was going on at top floor.

Could not meet any responsible person as no body had turned up till 11.30 hrs. Spoke to Mr. Praveen Incharge of the site on phone. He informed that due to no infra-structure developed by Huda the progress was slow.

Other near by groups like Pall, ORS etc, their work was going on at full speed. They started the work, I think, one year back and are progressing well.

As can be seen, it may take another more than 2 years for offering the possession.

Regarding master road, work of doing leveling with earth was going on by Huda between sector 88 & 89. Sewer pipes were also kept for installation of sewer line. It seems this work will pick up speed .

[kbmalhotra]

Ozone square, Heritage cottages. Sector 89.
Visited Ozone square on 8th April,12. There does not seem to be any progress in the work.
External plaster partially has been done on Block A. Rear side of the building is not yet touched. No body was at work on Block A. b & D.
Some work was going on at top floor of Block C. Hardly not more than10 persons were at work. On enquiry, they informed that brick work was going on at top floor.

Could not meet any responsible person as no body had turned up till 11.30 hrs. Spoke to Mr. Praveen Incharge of the site on phone. He informed that due to no infra-structure developed by Huda the progress was slow.

Other near by groups like Pall, ORS etc, their work was going on at full speed. They started the work, I think, one year back and are progressing well.

As can be seen, it may take another more than 2 years for offering the possession.

Regarding master road, work of doing leveling with earth was going on by Huda between sector 88 & 89. Sewer pipes were also kept for installation of sewer line. It seems this work will pick up speed .

[kbmalhotra]

Builder demanded service tax but gave no proper answers to my queries. I had sent them following letter.

In reference to your letter, following clarifications may kindly be made before the payment of service tax is done by us.
1. What is the ratio between material and labour over which the service tax has been calculated by you?
2. What is the percentage of service tax and how have you calculated the tax.
3. How much amount has been demanded by tax department and how have you distributed the tax amongst buyers.
4. You had informed a few days back that you had moved court against imposition of service tax.
5. What is the out come. Kindly provide the copy of court orders.
6. You were supposed to deliver the flats in 2010 but you failed. Had you delivered the flat in time this service tax would not have been imposed because Govt. has imposed service tax during 2010 only.
7. Why the customers are being punished for no fault of theirs.
8. Now when do you intend to hand over the flats to customers?
9. As per agreement you are supposed to pay penality for delay in handing over the flat. Why are you silent on that?
10. Kindly give reply in detail at an earliest so that the amount can be paid.
11. Please note that my whole provident fund received on my retirement has been spent on this flat. I am under heavy stress.
12. I visited site one year back ang again a few days back. There was no progress what so ever during one year's time.
13. The work has been stopped after you have collected more than 90% of amount from us.

A few lines from your side to console us will be highly appreciated.

It is learnt that they will send demand letter for revised EDC. Heritage has purchased land from Ferrous group and done the construction. Ferrous is demanding EDC at a very high rate like other builders. Heritage will do the same. We should get united and think about the course of action we have to take. We shall have to fix up date and meet builder.

Other members are requested to post their comments.

[SKD]

I Spoke to them today and I was very disappointed that he could not provide any satisfactory answer as to why construction is going at snail's pace.. They used to blame government earlier for not providing infrastructure but now government seems to have started doing their part. Now he says customers are not making payment as a result of that we are where we are today....I can’t believe even after so many years they still find it very difficult to provide date of offer of its possession...He says it might still take One more year…that too he is not sure…I agree We should get together to meet them in-person else they will continue to be ignorant

He said they have already sent out demand for Enhanced EDC to all the customers, We will get it probably by the middle of next week...They are charging Rs 142 Per Square feet.... Does it look like reasonable amount of money as compared to what others are charging?