Kishor Choudhari (Owner) 05 October 2014

Flat cancellation terms and conditions

Dear All,

I need help in understanding terms and conditions mentioned in the purchase agreement, pertaining to cancellation of the booked/reserved flat. Basic consideration amount (final/total cost of the flat)=Rs. 42,00,000/-

Clause mentioned in the agreement (in exact words) is as follows,

In the event of cancellation of reservation by you for whatever reason, all amounts paid by you shall be refunded after deducting service tax paid or billed till date, losses suffered by us, if any, and interest due/paid by you on delayed payments, subject however to a minimum recovery of 5% of basic consideration amount of Rs. 2,10,000/- (R/O to the next '000) towards cancellation and administration charges. Please note that refund amount shall not carry any interest.

I have following doubts,

In event of cancellation, will I be liable to pay Rs. 2,10,000/- only OR the service tax paid by me up to the cancellation day will be deducted as well? This question arises to me because its written "subject however to a minimum recovery..." in the clause
What is (R/O to the next '000) ?

Regards,

Kshor

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1 Replies

Hardeep (Business) 06 October 2014

R/o : Rounded off to the next '000 ( thousand ) - that is, if amount is 2050/= it will become 3000=

Service Tax : Will be paid by you whether deducted or billed - since once billed you are liable to service tax.

This is how I read the above terms.

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