Dear All,
I need help in understanding terms and conditions mentioned in the purchase agreement, pertaining to cancellation of the booked/reserved flat. Basic consideration amount (final/total cost of the flat)=Rs. 42,00,000/-
Clause mentioned in the agreement (in exact words) is as follows,
- In the event of cancellation of reservation by you for whatever reason, all amounts paid by you shall be refunded after deducting service tax paid or billed till date, losses suffered by us, if any, and interest due/paid by you on delayed payments, subject however to a minimum recovery of 5% of basic consideration amount of Rs. 2,10,000/- (R/O to the next '000) towards cancellation and administration charges. Please note that refund amount shall not carry any interest.
I have following doubts,
- In event of cancellation, will I be liable to pay Rs. 2,10,000/- only OR the service tax paid by me up to the cancellation day will be deducted as well? This question arises to me because its written "subject however to a minimum recovery..." in the clause
- What is (R/O to the next '000) ?
Regards,
Kshor
