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Adi Rai Mum (Consultant)     10 August 2011

Vat & service tax fy 09-10 registered flats - Mumbai

Dear Lawyers,

I have bought a flat in 2009 registered in the month of July 09. I got the possession of flat in May 2010 with single Key allotted to me for the flat saying we are waiting for OC to come and you can start your furniture work with Single key.

After that there was a litigation pending against the 5% VAT and service tax imposed by State givernment, and the result was expcted soon. As builder has not charged me with the VAT and Service tax during the registration of flat, he started asking to pay as a Bank Gurantee to the builder till the honourable court provides its justice.

He latter provided me with Possession letter and also OC for the society has come. Even the society has formed and when I went to builder to ask for the keys, he says that he cant give it untill i provide the Bank gurantee to him. As per him not all the formalities are completed and hence he can impose VAT and Service tax once the decision comes from Honourable court.

Can some one let me know if I can send a legal notice to the builder for the same.

Am I bound to pay Service Tax and VAT even after getting all the documents except the additional keys?

Awaiting response from you professional guys.

Thanks  and Regards

Adi



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