Builder sent notice for vat
Mangesh Kadam
(Querist) 09 October 2012
This query is : Resolved
I purchased a 1 BHK flat in Mar 2007 in Kandivili east. As per the recent case between the Maharastra Government and Builder association which the builder association lost. And now the builders are supposed to pay some VAT for the flats they sold. I received a notice from the builder to pay the 3.35% VAT as he says, he did not collect it when the deal was finalized and now the owners have to pay the VAT before 20th October. I see that most of the sites news papers say the flat owners are not supposed to pay the VAT and builders have to do that, I am not really sure what should i do as the VAT amount is huge.Builder has given the reference of the clause in my agreement which say I have to pay any tax in the future which is implemented by the government. Also Builder has calculated the 3.35% of the cost mentioned in my agreement. I am not really sure whether I am liabale to pay the amount or not. Any advise will be highly appreciable.
Raja
(Expert) 09 October 2012
you have to pay the tax if the clause in there in the agreement. but as the case was subjudice, you can ask for installment payment and in most of the cases it is accepted.
Mangesh Kadam
(Querist) 09 October 2012
Hi Raja,
Yes it is mentioned in the agreement. The letter received me from the builder states that i have to pay 3.35 % of the agreement value. But as a customer how will i know that he is charging me correctly. Because I read in newspaper that the vat % is 0 to 2 %.
Raja
(Expert) 09 October 2012
you can file RTI for the relevant details.
Mangesh Kadam
(Querist) 19 October 2012
My Agreement Value+Ammunites Value = 1815000 ( 1512500 = Agreement Value + 302500 = Ammunity Agreemt)
Other Charges* = 28750
Total Amt = 1843570
Percentage of Tax (Vat) = 3.35%
Total amt payable = 61760
*Other Charges: shall include amounts other than consideration i.e formation and registration charges,Development Charges,water charges,electricity charges,legal charges,M.S. Grill charges.)
can the builder charge on the ammunity agreement.
