Flatvat.com, an initiative from CA Sharad Patel, has gained momentum. Times Of India covers one of its first impacts:

A Belapur housing society recently scored a major victory over the value-added tax (VAT) issue. Following Lakhani’s Suncoast Cooperative Housing Society members’ refusal to pay 5% of the agreement value as VAT, Lakhani Builders reworked the VAT calculation. As a result, the amount sought from flat owners got reduced by almost a half.

Web site to help aggrieved Mumbai flat buyers:

Sharad Patel, an affected buyer and founder-partner of chartered accountants ASJ & Company LLP, said the Bombay high court on Tuesday held that every agreement with a developer need not be a works contract. It is for the sales tax assessing officer to verify each agreement with developers to determine if a particular agreement is a works contract and VAT can be levied. He has raised doubts on whether VAT can be charged on such flats sales.

CA Sharad Patel has setup www.flatvat.com to unite flat buyers against VAT for flat sales. Register with them to join in effort.