19 August 2012
My flat was registered in the month Sept 2009. At that time builder had not informed me regarding any VAT due in respect of my flat purchase. Latter in June 2012 the builder has advised me that I should keep a FD reciept equivalent to the VAT amount i.e. 5% of the agreement value and mark a lien in favour of the builder for VAT liablity. This has been complied by me. Now the possession of my flat is due and the VAT amount deposited as FD will be encashed by the Builder. I have cleared all other dues but the builder insist that I should pay interst for the VAT amount due right from September 2009 @15% per annum. Builder is refusing to issue any letter in this regard. Now my querry is :- (i) Am I required to pay interest on VAT @15% per annum from the date of registration though the same has claimed by the builder in June 2012? (ii) Whether I am liable to pay VAT amount @ 5% flat of the agreement Value? (iii)Which are the Govt. agency/forum where I can take up my greviences if I am not liable to pay interest for VAT? Padmamohan.T
20 August 2012
flat registered in 2009 and possession in 2012? are you sure about it ?
check the status of vat applicability with your STATE VAT department, ( as you have not mentioned place of flat) whether VAT was applicable on that city or not,
20 August 2012
Is all this transaction mentioned in agreement. If it is mentioned go as per agreement. If its not then there is no need to pay anything.
20 August 2012
Thanks for the comments to my querries. My flat is at Virar, Thane District Maharashtra near Mumbai. It is correct that the flat is registered in Sept 2009 and ready for possession.The builder is not giving possession he is demanding interest on VAT from the date of registration. The agreement provides for payment of VAT. The builder has claimed the same in June 2012? Then how the builder can ask for interest for the entire period?
CAclubindia
