an assesse has purchased a flat in Pune from an Individual in which the builder is also a party as per their standard draft of sale agreement as consenting party. Builder is asking from the purchaser assessee service tax and VAT on sale saying that since the earlier buyer had not paid it, (the sale to existing seller was executed on 20.01.2011), it will have to be paid now. my querry is:
1. Is it possible that this system is followed ?
2. Can the builder claim such service tax & VAT from subsequent buyer ?
NOTE: the seller had purchased the said property in the year 2011 only and (i) was service tax applicable on such transfers at that time ? & (ii) if yes or no, is it legal for the builder to recover the same from current buyer ?
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