Builder is asking for vat @2.5%

According to a recent verdict by the Supreme Court, the sale of a property that is under construction would be liable to value-added tax (VAT). In the case of L&T versus State of Karnataka, the apex court held that the pre-construction agreements for sale of immovable property would qualify as 'works contract' and, therefore, VAT would be payable on the transaction.

Dear Sir,

Kindly confirm the amount of VAT, as builder is asking for 2.5% and saying that it may increase to 6%. Is it not clear yet...

I had given them DD for registeration of propery which they are not returning. Earlier they were saying that your DD will be outdated after 3 months, and now they are saying that they have purchased stamp papers of that amount and if VAT is not paid, they will not process registration.

Kindly advise..