janardhana reddy kota (Senior Engineer) 04 February 2015

Noc from builder

I have purchased a flat for Rs 31100000/-. on 1/01/2012 and it is registered on my name on 5/01/2012.

Full amount is paid to builder as per agreement of sale i.e 31100000/- on 28/01/2015.

The venture is not completed as per the agreement of sale.(broucher) even after 3 years.

when I approached builder for possession, he is asking for service tax now after 3 years of purchase of flat which is not mentioned in agreement of sale.

Builder is not producing any clearance certificates from muncipal auhtorites

Can I take possession of house with out any approval from builder as I already paid full amount to him?

Please suggest me .

Regards

Janardhana Reddy Kota

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2 Replies

Advocate Ravinder (Advocate/Attorney) 05 February 2015

You can ask for all information you need from your builder including municipal sanction. It is his duty. You have to pay service tax, but I do not know how much. Consult your C.A./tax consultant. If the builder still continues to trouble you, file a consumer case against the builder.

T. Kalaiselvan, Advocate (Advocate) 05 February 2015

If the builder is not cooperating after receiving the full payment, you may issue a legal notice to him demanding him to handover possession with all the necessary formalities duly complied with. As far as the service tax is concerned, it is to be paid as per the prevailing rates and not the rate quoted by the builder.

Service tax on under construction property is levied on the services provided by the builders or real estate developers or any other person where building complexes or civil structures or part thereof are offered for sale or is payment received before the issuance of completion certificate by a competent authority. Service tax on under construction property is liable to be paid.

The Government has mentioned that the activities which would be considered as declared services and construction of complex, building civil structure or part thereof, has been stated as a declared service provided by the Service Tax Act.

It would be on the service provided by the builder at the rate of 12.36% (incl. of edn cess and SHEC).