Builder asking for VAT


Dear Sir, 

 

I have a flat in TDI Kingsbury Kundli Sonipat. Its a resale property that I purchased in 2016 (ready to move the posession was offered to original buyer in 2014).

Now the builder has sent a letter saying that if you want ot get registry done, you have to pay VAT otherwise NOC from the builder would not be given. 

I have read somewhere that since I purchased a ready to move property (not under construction), why should I pay VAT. The builder should recvover VAT from original buyer.  

Legally can the builder force me to pay VAT? Can the builder withhold the NOC for registry (pending VAT payment). 

 

Please guide me accordingly. 

 

regards

 

Manu Tandon

 

 
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Advocate

Who is the owner of the Flat?  

If the original buyer is the owner of the flat, then why do you require any NOC from the builder?  What for?

I suspect the original buyer has not got perfect title so far in his name.  Still the original buyer seems to be having some pending payment to the builder.  Better check up.

 
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I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount
 
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I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount
 
Reply   
 

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount
 
Reply   
 

I purchased the flat in 2016 from builder in 2016. This was done through agreement however registry was not open for our tower. In 2017 the builder sent letters to all residents regarding payment of VAT. Prior to that there was no communicatipn regarding VAT from the builder. I told the builder I have purchased in resale. Then there was no communication. In Feb 2018 the builder got clearances from government regardong registry. Then the builder sent letters to all towers to get NOC. However NOC will be given after we pay VAT amount
 
Reply   
 
Advocate

You yourself say that the original purchaser has not got done registry.  Therefore, the original purchaser has no clear title so far.  Unless the original purchaser pays the VAT to the builder, the original purchaser will not get registry.  If the original purchaser does not get registry, you will not get.  Therefore, either the VAT has to be paid by the original purchaser or by you, so that you can get NOC and registry.

It is for you to decide, how you want to go about it.

 
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Legally speaking can builder stop my registry? They can legally ask original buyer to pay the vat.
 
Reply   
 
Advocate

Why don't you understand?

Has the original buyer has got registry done?

If not, can he get it done without paying VAT to the builder?

If the original buyer has not got registry done in his favour so far, how can the original buyer sell the property to you?

Therefore, here, instead of the first buyer getting the registry and then giving registry to you, YOU will be getting the registry from the builder straight.  Therefore, the builder is asking the VAT amount from you.  Otherwise, he will keep quite till such time the original buyer comes and demands from the builder for registry.  At that time, the builder will ask for VAT payment from the original buyer.

If you speak legally, you have no right to ask anything from the builder.  Legally speaking, you have not entered into any contract with the builder.  Legally speaking, the contract is between the builder and the first buyer.  Legally speaking, you are a complete stranger to the builder.

Therefore, if at all, you can ask only the original buyer, with whom you have entered into a contract to buy the ready built flat.

If the builder has to ask VAT with the original buyer, then the builder will ask the original buyer at his own sweet will and time.  You cannot urge the builder.  

 
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FIN

'Buyer Beware' applies to property deals.

It shall be appropriate to get proper legal opinion from a very able LOCAL senior counsel of unshakable repute and integrity specializing in revenue/property/civil/DRT matters and well versed with LOCAL applicable rules/laws and having successful track record…. and worth his/her salt , before signing or making payment.

This may cost some FEE but can defend long term interest and hard earned monies.

 

 
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