Refusing to bow down to their developer's demand of 5% value-added tax (VAT), residents of Suncoast Co-operative Housing Society, Belapur, have fired another salvo against Lakhani Builders.

The residents have told Lakhani they will not pay penalty and interest if it does not clarify the computation of the VAT figure. The developer has given the residents a deadline of September 31.

"Considering the state government's silence, we are not hopeful of its support to us if the developer puts pressure on us by sending a legal notice ... We have to protect ourselves by taking a firm stand," said a resident.

The residents have also asked Lakhani to explain how it selected a particular option among three framed under the Maharashtra VAT Act for computing the tax. Besides, the residents have asked for a copy of the certificate wherein the developer is registered as a dealer with the sales tax department (which makes it liable to pay VAT). "Unregistered developers do not have to pay the tax. We want to check if our developer is registered or not," a resident said.

Lakhani director Sunny Lakhani said, "We planned to meet the residents last weekend to clarify the issue, but could not due to some personal issues . We hope to meet the residents soon."