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RJ (Software Engineer)     24 November 2012

Vat reimbursement from builder

Hi All,

I am Ravi from Pune.

I had purchased a Ready possession flat in July 2011 (in Akurdi, PCMC, Pune); have paid 1% VAT for the same.

Now, given the current arguments for VAT, some of which claim that, builders are supposed to pay VAT on their own

a) If the decision supports flat owners (builders supposed to pay VAT), is there some way I can claim my paid VAT back from builder?

b) I read somewhere that, for ready possession flats, VAT is Not Applicable, if Yes, then how do I go ahead in proving the same and fight for VAT refund from builder?


Any advice will be greatly appreciated.


Thanks & Regards,


 1 Replies

Jai Karan Nagwan (consultant)     25 November 2012

Hi, if your flat construction was compeleted before 2006, you are not supposed be fall under the purview of VAT. on the other hand, any flat purchase from builder has definitely undergone works contract as mentioned in the MVAT. if builder has recoverd and paid the same to the Govt, there is no scope of recovery. However Appeal filed by CREDAI in the matter is under adjudication in the SC, if Supreme Court Decide, Govt may refund your tax, but you have no cause of action against builder. Only you can seek the details of input tax from the builder.

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