Builder asking for VAT

Who is the owner of the Flat?  

If the original buyer is the owner of the flat, then why do you require any NOC from the builder?  What for?

I suspect the original buyer has not got perfect title so far in his name.  Still the original buyer seems to be having some pending payment to the builder.  Better check up.

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount

You yourself say that the original purchaser has not got done registry.  Therefore, the original purchaser has no clear title so far.  Unless the original purchaser pays the VAT to the builder, the original purchaser will not get registry.  If the original purchaser does not get registry, you will not get.  Therefore, either the VAT has to be paid by the original purchaser or by you, so that you can get NOC and registry.

It is for you to decide, how you want to go about it.

Legally speaking can builder stop my registry? They can legally ask original buyer to pay the vat.

Why don't you understand?

Has the original buyer has got registry done?

If not, can he get it done without paying VAT to the builder?

If the original buyer has not got registry done in his favour so far, how can the original buyer sell the property to you?

Therefore, here, instead of the first buyer getting the registry and then giving registry to you, YOU will be getting the registry from the builder straight.  Therefore, the builder is asking the VAT amount from you.  Otherwise, he will keep quite till such time the original buyer comes and demands from the builder for registry.  At that time, the builder will ask for VAT payment from the original buyer.

If you speak legally, you have no right to ask anything from the builder.  Legally speaking, you have not entered into any contract with the builder.  Legally speaking, the contract is between the builder and the first buyer.  Legally speaking, you are a complete stranger to the builder.

Therefore, if at all, you can ask only the original buyer, with whom you have entered into a contract to buy the ready built flat.

If the builder has to ask VAT with the original buyer, then the builder will ask the original buyer at his own sweet will and time.  You cannot urge the builder.  

'Buyer Beware' applies to property deals.

It shall be appropriate to get proper legal opinion from a very able LOCAL senior counsel of unshakable repute and integrity specializing in revenue/property/civil/DRT matters and well versed with LOCAL applicable rules/laws and having successful track record…. and worth his/her salt , before signing or making payment.

This may cost some FEE but can defend long term interest and hard earned monies.

 

 

Get proper legal opinion in writing from your own counsel on marketable title, approvals etc .

Thereafter you can proceed as deemed fit to you at your end…e.g; pay the VAT or as original buyer ( your seller) to pay or claim from whoever is to pay the VAT.

However do anything after proper legal opinion as already suggested.

Has the original buyer has got registry done?

No. The registry was not open at that time (Howver the posession was offered by the builder in 2014, so technically the property was complete). I purchased in 2016 so technically I did not purchase an underconstruction flat (I have read somewhere that VAT is not applicable on resale and is applicable only on under construction property)

I purchased the property as sale agreement. Copy if this was provided to builder as well and based on this document, the builder issued the posession certificate to me. 

So I am claiming that builder should ask for VAT from the person who purchased the flat and paid all the installments to builder till the time of "Offer for Possession". My reason is that I did not purchase an under construction property so why should VAT be applicable on me? 

I my claim holds any ground i.e. if my claim shows any logic in legal terms, then I can go for case against the builder otherwise I would be forced to pay the hefty amount. 

I think you are bent upon insisting what you say.

You refuse to understand the legal position.

You know the original allottee has not got the property registered in his name.

He has to get it done - only then he will be in a position to sell it.  Without registration, the original allottee is not the owner of the property.  Therefore, if you want to get the property registered in your name, you have to approach only the first allottee and not the builder directly.

If you approach the original allottee, as already stated, he will not be able to register in your favour, as he himself has not got registry done in his favour so far.

In that situation, the original allottee if he approaches the builder, the builder will ask him to pay the VAT.  

Similarly, instead of the original allottee, if you approach the builder direcly, (since you are approaching) he will ask you for VAT.  Whether you pay or the first allottee pays the VAT - it is immaterial as far as the builder is concerned.  All that he requires is payment of VAT.

Please appreciate.  Possession is different and Registration is different.  

Are you satisfied with the Possession.  Then why are you asking for Registration?

Either persuade the original allottee to pay the VAT or you come forward and pay the VAT.  If you do not want to pay VAT, then dont expect the builder to do the Registration in your favour.

THAT's ALL.