Vat on newly purchased flat.

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2013 Dear Sir,

We seek your expert advise on...

We have been purchased one residential flat in the year 2009 which was under construction and now it is ready for possession.

I have been made full payment of the flat cost and other additional charges i.e corpos fund, electric charges, one year maintenance etc.

Now the builder is asking to pay Service Tax and 1% VAT on Flat cost otherwise he is refusing to give me Possession.

Please guide me whether VAT & Ser.Tax on property is to be born by builder or customer?

I heard and read somewhere that it is to be born by builder. If so please guide me for further necessary action.

Waiting for your earliest reply.

Regards

Aditya Maheshwari

Aditya Maheshwari (Expert)
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31 December 2013 It was said in some newspaper that VAT is liability of the builder but in practical case it is paid by the home buyer only as the same is also mentioned in the agreement for sale.