15 May 2012
Mr. A booked flat in Apr 2010, registered in May 2010 and took possession in June 2010. At the time builder had not indicated or asked payment of 1% VAT on registered value.
Today after 2 years time, builder has sent notice demanding 1% VAT amount alongwith interest which is about 45% of VAT amount. Builder has asked to pay VAT amount alongwith interest by way of cheque favouring the name of builder.
My questions are
1) Whether above property is liable for VAT?
2) Whether builder can ask for VAT amount and interest thereon, without sending any demand notice earlier, particularly when this was not informed during booking.
3) Whether VAT notice should be issued by govt directly in the name of flat owner or in the name of builder?
15 May 2012
Once the registration of the flat is over the buyer of the property is not liable to a single rupee over the contract value. Further, Once the agreement is done, VAT is the liability of the builder. The buyer is not responsible to pay the VAT.
CAclubindia
