Hi all,
I have a query regarding my property which i had bought in 2010 September in Belapur. The same was a resale flat. The original owner had bought it before April 2010 but i do not know whether the same was bought by the original owner as a ready flat or under construction flat (I know that VAT is not applicable on ready flats sold). The agreement value for the flat as bought by the previous owner was rs 40 lac.
The builder is now asking us to shell out Rs 2 lac towards VAT (@ 5% on 40 lac). I am aware that the liability of VAT is not on me since the flat is a resale flat for me. But considering that the prevoius owner will never pay the amount, and the buyer may create hurdles in our conveyance process and issuance of share certificates, I am under the impression that i may have to pay the amount.
My query is:
1. Is the calculation of VAT @ 5% flat on agreement value correct?
2. Is there any way I can reduce my liability to minimum extent as far as possible?
3. Can we consult some authorized person (eg a solicitor or property advisor who is external to the builder) so as to be doubly sure about the vat liability?
4. What documents should we request the builder to show/submit to us so as to calculate our exact liability?
5. Is there any recourse that i have to avoid paying this amount? Cn the builder force us to pay by stopping our conveyance process?
Kindly help us out as we are very hassled by the prospect of paying such a huge sum. Any early reply will be highly appreciated.
