Hello,
I have a bit complicated case with respect to my flat which was purchased from as a second owner. I am explaining it in chronological order:
1. The first owner bought the flat and did the agreement registration with the builder in Sept 2007. The building was under construction. VAT was not levyed in his set of payments as it was under dispute. However the registed agreement clearly states that the first owner will be liable to pay the VAT.
2. The possession of the flat was given to the 1st owner and no VAT was recovered or discussed. The possession was given in Sept 2009.
3. The 1st owner sold the flat to me in Dec 2011. The building got the OC(Occupancy certificate) in Oct 2011. The builder provided NOC and did not discuss VAT at that point either. My agreement with the 1st owner states that the 1st owner agrees that all payments are clear and so says the NOC.
4. In Nov 2014, the builder did deed of declaration of Apartment with the sub-registrar, and thus the apartments are formed.
5. In Dec 2015, the builder came back to us asking for VAT. The VAT amount requested is 5% of the agreement value that the builder did with the 1st owner.
6. I recently spoke to the builder to complete my deed of apartment with him so that the flat's conveyance is with me. But he is of the opinion that unless his VAT is not resolved with the previous owner, he will not do the deed of registration.
7. The 1st owner is of the opinion that the builder has aleady given NOC. So there is no question of VAT at this point.
I am of an understanding that since I am not liable to pay the VAT, the builder is basically holding me ransom. In future if I want to sell this flat, I will need his NOC and that is the time he will ask me to pay the VAT and clear all the matter.
What is the way out ? Can I go ahead and the deed of apartment with the sub-registrar without involving the builder as the deed of declaration is already done and deed of apartment with few of the other members of my building is also done. The deed of declaration of apartment carries my name against my flat.
Please suggest.
N.P.
