Legal Question in Real Estate Law in India

VAT applicable on new purchased flat

I have purchased underconstruction flat in Dec 2007. While taking possession builder from Pune is asking to pay 5% of agreement cost towards VAT applicable on flat purchase. He is saying that I need to pay it by undated checue because case is going on against govt for this and if they loose this case then we need to pay that VAT and in that case they will use my undated cheque. Please advice


Asked on 5/18/09, 7:33 am

2 Answers from Attorneys
Shrichand Nahar S.V.Nahar, Advocate

Re: VAT applicable on new purchased flat

Check the terms of the agreement. If you have agreed to pay taxes, abide by the agreement.

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Answered on 5/19/09, 2:11 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: VAT applicable on new purchased flat

You may need to meet your liability as per your contract. The cheque, however, may be written in favour of the authorities concerned coupled with a separate agreement with the builder to whom the cheque may be delivered.

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Answered on 5/18/09, 10:19 am


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