5% vat on under construction flat

kamalkant mishra (Querist) 12 August 2012 This query is : Resolved
I have booked a flat in March,2009 in uder construction building in Global city, virar,Dist.Thane,Maharashtra and the same was registered in sept.2009.I have not get the possession of the said flat till the date but expected in October,2012.Now the builder has sent a demand letter of Rs.47,124/-being 5% of agreement value(i.e.Rs.9,42,538/-) and a blank cheque for interest on vat amount for the period from the date of registration(i.e.March,2009) to till the date of payment.Pl.suggest whether i should pay the vat amount alongwith interest ? or is there any abetement to the extent of value of land(i.e.maximum 70%) which should be deducted from the agreement value?

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Raj Kumar Makkad (Expert) 12 August 2012
You are liable to pay vat to the extent of 5% the agreed amount of consideration but not interest amount as the same was never demanded from you earlier and delay if any is due to builder.

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