Dear Friend,
1. Since O.C. is necessary for every building, while transferring possession of flat it is necessary to get O.C. Possession given without O.C. is not valid in view of law and penalty will be levied on builder by the Municipal Corporation.
2. If possession has been given to flat owners then it will be assumed that proper certificate of completion has been received from the Architect of the building. Since the VAT and Service Tax will be levied in under construction building only and not in a building , which has got completion certificate. The builder can not charge Service Tax and VAT after giving possession of flat to the owners.
3. The registration of Society in under Society Registration Act and which requires nominal fees based on capital of the society and number of members. The builder can not charge so much of amount for its formation. it is duty of builder to form a society and handover the same to the flat owners.
You can tell the builder that the amount charged by it as Service Tax and VAT after giving possesion of the flats are illegal. You can ask for Completion Certificate of architect to prove your case.
You can also ask for actual expenses for formation of society and it will not as much as Rs. 25000/- including fees of professional.
Regards'
CS Deepak P. Singh
