Mahavat

As per Rules and with reference to High Court judgement dated 30th Oct, 2012, Builders have to pay 1% Vat 

(1% of Agreement Value) by 31st October, 2012 otherwise additional annual penalty of 15% of Tax will be levied.

Hence the builders can recover this amount from the Buyers, but at the same time he cannot keep Margin in this ( 25% Penalty as in your case ). At the most you will be liable to pay 15% not more than that.

Regards,

RAJESH CHOUDHARY

In case possession of the completed property is already handed over to buyer on payment of full price, is the builder entitled to recover the VAT amount from buyers? What should buyers do if the builder asks for VAT amount from the buyer for property of which possession was handed over more than 1 year ago?

In case possession of the completed property is already handed over to buyer on payment of full price, is the builder entitled to recover the VAT amount from buyers? What should buyers do if the builder asks for VAT amount from the buyer for property of which possession was handed over more than 1 year ago?