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hsharma25

Do the flat owners need to pay VAT to builder after taking possesion ????

Question

hsharma25

Hello,

 

I have bought a flat in Bestech Parkview Delight in Dharuhera Haryana in January 2011. Now from the past 2 years I am chasing the builder ( Bestech Gurgaon) for registration of my property.

 

In the year 2012 & 13 they were not doing registration because of enhanced EDC charges which was passed on to customer, so after taking possession I again paid them INR 92000 of enhanced EDC charges. Then I asked them to process my registration and from past 1 year they are telling me to again pay 4.2% of VAT charges on the total sales and then they will do the registration.

 

I have also investigated that the other builders in Dharuhera are giving the possession and doing the registration without demanding any VAT charges.

 

I need your guidance on what to do, even after taking possession from the past 3 years I am struggling to get my flat registered.

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12 answers to this question

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MANOJ B. PATEL

Welcome to RTI INDIA PORTAL. Thank you for choosing RTI INDIA PORTAL.

 

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MANOJ B. PATEL

Dear member,

 

This portal is dedicated to discussing issues related to RTI Act 2005.

 

For doubts/queries, such as yours, best is to consult a knowledgeble advocate.

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koteswararaonerella

No you need not pay and payment of VAT does not arise when you purchase a FLAT from a builder.You ask him what for VAT is to be paid and to whom it is paid and come back with the information given by him for more clarity and advice

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CTFORGK2

Everything changed after sc decision in l&t vs state of Karnataka in which raheja vs state case has been considered . -taxes-on-under-construction Business Standard

 

 

BUILDERS HAVE TO PAY NOT BUYER (SAYS ANOTHER DECISION ) but

Do they pay or ask buyer to pay is a hypothetical issue .but BUILDER SHOULD PAY .

 

 

Builders can't pass on VAT to flat buyers: Supreme Court | Latest News & Updates at Daily News & Analysis

 

 

Though there was/is confusion on this subject , as many decisions of many hon. High courts & sc decisions existed but from few recent Sc decisions specially larger bench decision clears clouds of doubts .

 

Please read them thoroughly & cite wherever needed .

 

Search Google for more similar case study .

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harinder dhingra

There is a huge scam of Rs 10000 Crore or more in Haryana where the Builders/Colonizers have not deposited or deposited and then with the connivance of Excise & Taxation Haryana taken the refund.

 

Watch this space in future as undersigned RTI applications have reached Commission stage.

 

 

harinder dhingra

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Prasad GLN

First set the ball in motion by sending a Registered legal notice under CP Acst. to Builder to immediately register the Flat in your name as you have paid entire amount as agreed upon, as per contractal terms and conditions. (Hurry as limitation period for filing complaint under CP Act is two years.

Let him reply and commit any thing in writing.

Just file a complaint in District Consumer Forum which costs less than Rs.500/- in all.

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CTFORGK2

Also always correspond IN WRITTEN SPEEDPOST (AND keep Receipt as proof ) EVEN WITH BUILDER .cite him hon. SC decision with opting not to pay .ask him for reg. & a.y government order on vat on buyer . all IN WRITTEN .

UPLOAD REPLIES IF YOU WISH FOR MORE CLARITY .

 

ORAL HEAR SAY IS OF NO USE & IS NO PROOF . don't pay without in written notarized proofs .

Ask for every info in written by builder .

 

 

Also read this inspiring article in below link.you should make complaints in group or with your RWA

 

Lokayukta asks Gurgaon HUDA chief to redress residents' complaints against builders

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Dr V S Prasanna Rajan

Enclosed in this post, an attached file detailing the scope of the levy of VAT on developers / builders with respect to construction of flats which will give some guidance / clarity in this respect.

 

It is to be noted that the instruction is issued by the govt of tamilnadu with respect to Tamil Nadu VAT Act.

 

Since the VAT act is very similar across states, this circular will provide you some guidance.

13_2013_031213.pdf

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koteswararaonerella

VAT value added tax will be charged on goods manufactured/sold and for building construction by the builder involves purchase of various materials for which he had already paid tax and when you are puchasing a Flat as per government rules, no VAT needs to be paid by the buyer . if the procedure is different in your state you need to find out from the commercial tax department.

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harinder dhingra

Yes in Haryana, the situation is different. Here you have to pay VAT on flats sold after taking the credit of VAT already paid by the Builder/Colonizer on material etc.

 

The undersigned is before Hon'ble SIC, Haryana and watch this space for more news/developments in this regard/s.

 

harinder dhingra

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CTFORGK2

I beg to moderators please forgive me as I am pasting link of Non gov. blog article ,

But subject needed deep analysis or study of many decisions which was partly answered in article and can be useful in rti matter of subject .

 

Dear sir below link haves brief analysis of haryana vat , its problems , its ALL GOVERNMENT CIRCULARS , related case .

 

It may be useful I hope so .

 

Haryana VAT ? State VAT v. Builders v. Flat Owners ? A Triangular Tussle

 

Its a real confusing issue but honble SC decision made all bounded and in future may decisions can come on basis of SC decision & can change scenario ALL OVER INDIA .

vat on flats has evolved & SURELY WILL EVOLVE IN PUBLIC FAVOUR as matter will get raised .

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harinder dhingra

Sir,

 

It is very complicated issue.

 

hd

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