Labour cess passed onto to buyer from developer
Amit
(Querist) 20 December 2013
This query is : Resolved
Hello,
I purchased an apartment in May 2010. At the time of possession builder has asked for Labour Cess from me. This was not part of original contract between me and the developer.
Is is right on the part of the developer to charge this tax from buyer. From what I could gather is this is on part of contractor.
In the BBA/FBA or agreement he had mentioned that any state tax will be passed on to buyer. But this should have been disclosed earlier.
Also, i have not come across any other builder who is charging such amount from buyer. Even JayPee has not done.
Property is located in Noida, U.P
Developer : The Three C Company
Thanks !
ajay sethi
(Expert) 20 December 2013
refuse to pay as not provided under agreement
Amit
(Querist) 20 December 2013
but builder has mentioned all state tax , local tax must be paid by the buyer.
T. Kalaiselvan, Advocate
(Expert) 21 December 2013
Do not confuse and get confused. If there is a mention about this in the agreement then you are bound to comply with it or you can reject it or refuse to pay quoting no such thing in the agreement.
Rajendra K Goyal
(Expert) 24 December 2013
Taken from Net:
Builders Association of India v. UOI [(139) 2007 DLT 578] and New India Construction Company v. State of Haryana Court held by observing that under the scheme of the BOCW Act, the intention was not to confine the applicability of the Acts to the owner or the contractor but to cover both. The cess should be collected from either the owner or the contractor. The Court has also suggested that if the cess is not collected from the contractor then the same may be collected from the owner.
In present case the owner is purchaser of the flat.
But in agreement the liability was not confirmed on the purchaser hence the contractor or builder should bear the cess.
