Dear Sir/Madam,
I've a query regarding the MVAT imposed on by MH Govt. on UnderConstruction properties. I've purchased an UnderConstruction Flat in Thane, MH in the year 2009 and entered into Agreement of Sale on 1Oct2009. The status of the project is still under construction and as according to the builder it is nearing possession. The project has already been delayed by an year and actual possession as per agreement was supposed to be on 31May2011.
Now yesterday I got a Demand Letter from the Builder which says that I've to pay MVAT/VAT @5% of the Consideration value of the Flat to the builder. The reason being 5% is because the Sale Agreement was registered on 1Oct2009 as mentioned by the builder but 1% for those whose agreement was done after 1Apr2010.
As per my knowledge (from online articles), there has been a stay on this MVAT imposed on UnderConstruction Flats by the High Court (attached notification by Govt. of MH).
Sir I just wanted to know whether the MVAT demand made by the Builder is legal and am I (as a purchaser) liable to pay the MVAT to the Govt or the Builder is responsible to pay the same? If the demand made by the Builder is illegal, please recommend me some way to handle it.
Hoping an early response. Thanks in Advance.
