Interpretation of clause in my sale deed of residential property
Raghunath kini
(Querist) 11 August 2012
This query is : Resolved
Dear Sir,
I had entered in to registered agreement with the builder in pune in 2008 which contained the clause-
" Promoters have informed the purchaser that promoters shall develop / construct the said property / building/s either themselves and / or through any other contractor/s..Purchaser shall be liable to pay and shall pay sales tax, service tax or any other taxes levied by the Govt. if applicable on sale or otherwise on any transactions in execution of or in connection with this transaction in proportion to the cost or area of the said premises as applicable on demand made by the promoters or before taking possession of the said premises whichever is earlier the purchaser is agreeing to pay such sales tax, service tax or any other taxes if and when the said becomes payable."
I got the possession of the flat in 2009 with conveyance deed and now it has been registered under housing society. Now my question am i liable to pay sales tax if demanded by the government? as per the ambiguity of the clause i feel that my responsibility is over the moment i got the possession of the flat.
Awaiting for your valuable opinion in this regard.
Mobile 09096319536 Raghunath Kini
ajay sethi
(Expert) 12 August 2012
if you have got posession in property in 2009 and builder has not raised any demand for service tax till date why are you apprehensive now?
the fact that 3 years have passed since you have taken posession and builder is completely silent on any tax dues dontloose sleep over a n0on issue
Raghunath kini
(Querist) 12 August 2012
Thanks for the prompt reply... Im sending a link for the latest news on court verdict.
http://taxguru.in/goods-and-service-tax/mvat-grant-registration-administrative-relief-developers.html
So i would like to know if the builders are made to pay vat for past sales, will the clause mentioned above in the agreement makes me liable to pay the dues.
Pl enlighten me.
Raghunath Kini
Raj Kumar Makkad
(Expert) 13 August 2012
As you have a specific agreement with the builder which contains term that you are liable to pay such dues only prior to delievery of possession so even though such liability vests with the builder, he cannot legally recover it from you.
Raghunath kini
(Querist) 13 August 2012
Thanks for the clarifications....
Kini
Raghunath kini
(Querist) 27 August 2012
Today I received a letter from the builder highlighting the Hon'ble high court verdict about sales tax...
The letter further reads-
"Kindly note, this tax being an indirect tax it is liable to be collected from the flat/office/shop purchaser on agreements registered on sale of flats/offices/shops, etc payable before 31st Aug. 2012
Hope you will understand the gravity and seriousness of the subject for which we request you to make necessary arrangements and take necessary steps."
Now how should I respond to this letter ?
I would appreciate if Im advised on this matter
