Can A Builder Ask For VAT And Service Tax Even If He Didn’t Mention About Them At The Time Of Sale?
Question asked by Mr. Amrendra Singh from Bangalore:
Hi I came to know about u from some of my friends.
Now the problem I am facing is as below.
1. I had bought a flat in Bangalore from the builder “UKN Esparanza “ some 3 months before and at the same time we have applied for the loan from IDBI bank. Now we have made all the payments towards the apartment including the deposits and other things and only the registration is pending.
2. Recently they have sent a demand lettter to pay the registration cost and included Vat and service tax with that. Though at the time of booking of the flat they have confirmed us that there won’t be any VAT and service tax charges.
3. I understand that there is a clause in the sale agreement which says that any taxes levied by govt. at the time of registration has to be paid by the customer, but they have not mentioned anything towards the VAT and the service tax on the breakup latter provided and the bank has also funded based on the breakup letter.
4. Now since the Vat and the service tax levied is in tune of 3 L, I am unable to pay the same.
Need your assistance in understanding that how we can handle the situation. As these charges were never been discussed at the time of the sale, how can a builder ask fr the same now.
Anticipating your fast reply in the regard.
Thanks & Regards
Amrendra Singh
Vatsala Answers:
VAT and service charges are statutory liabilities passed on the customer. You can approach a chartered accountant to determine if what the builder is demanding in lieu of the same is the correct amount or not. Other than that there may not be any way to completely escape paying it. Vatsala
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