Raja K S Tanwar (SME) 07 July 2018

Suggestion on VAT amount issue.

I purchased a ready to move in flat and I paid approx 1.8L for 2% VAT amount.

But in Conveyance Deed builder mentioned that they have not taken any such amount and we have to pay this amount whenever Govt will ask for this amount.

This happened with many customers but no one is worried about this. Also when I asked for receipt they threatened for legal case to defaming their reputation.

Please advise what can be done in this.

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4 Replies

R.Ramachandran (Advocate) 07 July 2018

Do you know that for a ready to move in flat no VAT is payable?

Whom did you consult before paying towards VAT, for a ready to move in flat?

When did you pay?

You paid this amount by cash or by cheque?

What is the agreed consideration for the ready to move in Flat? Whether the entire agreed amount is mentioned in the Sale Deed or not?

Whether the VAT amount paid by you is over and above the agreed consideration for the ready to move in Flat?

Raja K S Tanwar (SME) 07 July 2018

It was paid by cheque. It is not included in Conveyance Deed. Initially we paid this as asked, and didn't inquired about this.
Also I was not aware that they mentioned this in Conveyance Deed that vat amt is not paid, else I don't get this property registered without clarity on this.
Now feeling like cheated. I paid amount in Jan'17 and got my property registered in Feb'17

Raja K S Tanwar (SME) 08 July 2018

Hi All, pls update..

R.Ramachandran (Advocate) 08 July 2018

When you have some agreed consideration, and if you have already paid some amount (in this case Rs. 1.8 lakhs), would not be paying the balance consideration i.e. total agreed consideration LESS Rs. 1.8 lakhs?

You are an educated person, and when you have signed the agreement which says that you have not paid VAT, who will believe that you have signed it without reading?

What proof you have to say that the amount of Rs. 1.8 lakhs that you paid was towards VAT?

Again, it is more than 1.6 years.