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vineet   28 December 2015

Vat on builder flats in haryana

Dear Sirs,

I bought a flat in 2006 in faridabad on construction linked plan and got possession in 2014. Builder has now come up with VAT demand @3.25% of the flat value. 

-As per Govt of Haryana VAT circular, VAT is applicable from 17 May 2010. Builder had raised construction linked demands and 90% of my payments are made before May'2010. Do I need to pay VAT on this amount?

-Builder maintains that he is being asked to pay VAT/sales tax since 2007 so he will recover the same from me. Please guide if this is true. 

-Builder has come up with a formula of 4.2% VAT on some inputs and 13.135% on some others. Is this correct way of caculating VAT? 

-Going by the caculations, the my flats sale consideration for VAT is more than my entire flat value. Is it possible? If not, what is the appropriate platform to raise the complaint against the builder. Please advise.




 1 Replies

vswaminathan   31 July 2016

Response (volunteered, late though, if were found to be helpful) Prima facie the points of doubt raised must be of common concern to all his co-purchasers of Flats from the same builder. If so, suggest to better take those on with builder, collectively. And do so, under advice from a competent and reliable local counsel. The judgment of the Del. HC in Bansal’s case , since delivered might be supportive. Look up for elaboration, in the material available for free in public domain.

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