VAT on Flat - Keeping people away from ing flat - Indian Real Estate Forum

matrix · 12-03-09

I took possession of new flat in Feb, 2009, located at Dombivli East, Maruti Mahadev Nagar. It was a shock when I was forced to give Irrevocable Bond stating that I am liable to pay the VAT, if applicable, on my new flat if the government of Maharashtra imposes the same. The dispute on VAT is presently pending in the court of law.

The Builder has also asked me to give a Blank Cheque duly crossed and signed by me (mentioning Not Over Rs.). The Builder has never informed me about the VAT while booking the flat in April, 2008 or later. This was informed only when handing over the Key of the flat in Feb, 2009!! The customers are not being informed about the VAT when booking the Flat. I am sure, If the customers of the flat are liable to pay VAT, the builders and the government will have to face a major setback and tragedy in real estate.

New ers are required to ask the builders about the VAT before booking new property.

12-03-09

What was the % of VAT? And was it on the whole value of the apartment?

shamsy · 15-04-09

I have a problem as well, I have not yet taken possession of my flat booked in 2005. The builder wants 2% of the cost value to be held as fixed deposit in a bank till the issue is sorted out. I think the govt. needs to set rules properly before imposing such ridiculous rules. I am in a quandary what to do. Has anyone paid out the VAT?

mahesh pune · 28-04-09

All builders are mentioning VAT in agreement as still it is not clear and case is in court. How much VAT builder is asking 4% or 12% ?

12-03-09	#1
matrix New Member Join Date: Mar 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 0	VAT on Flat - Keeping people away from ing flat I took possession of new flat in Feb, 2009, located at Dombivli East, Maruti Mahadev Nagar. It was a shock when I was forced to give Irrevocable Bond stating that I am liable to pay the VAT, if applicable, on my new flat if the government of Maharashtra imposes the same. The dispute on VAT is presently pending in the court of law. The Builder has also asked me to give a Blank Cheque duly crossed and signed by me (mentioning Not Over Rs.). The Builder has never informed me about the VAT while booking the flat in April, 2008 or later. This was informed only when handing over the Key of the flat in Feb, 2009!! The customers are not being informed about the VAT when booking the Flat. I am sure, If the customers of the flat are liable to pay VAT, the builders and the government will have to face a major setback and tragedy in real estate. New ers are required to ask the builders about the VAT before booking new property.

15-04-09	#3
shamsy New Member Join Date: Apr 2009 Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts Rep Power: 0	Vat I have a problem as well, I have not yet taken possession of my flat booked in 2005. The builder wants 2% of the cost value to be held as fixed deposit in a bank till the issue is sorted out. I think the govt. needs to set rules properly before imposing such ridiculous rules. I am in a quandary what to do. Has anyone paid out the VAT?

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12-03-09	#2
varunet Unregistered User Posts: n/a	What was the % of VAT? And was it on the whole value of the apartment?

28-04-09	#4
mahesh pune Senior Member Join Date: Apr 2009 Posts: 504 Thanks: 0 Thanked 1 Time in 1 Post Rep Power: 1	All builders are mentioning VAT in agreement as still it is not clear and case is in court. How much VAT builder is asking 4% or 12% ?