Dear Sir/ Madam,
I had purchased an under construction Flat in Bangalore in the month of Jan 2012 and the same has been registered on 22nd Feb 2013 (Stamp duty and registration charges duly paid). The builder has made only two agreements Agreement for Sale and Sale Deed.
Construction agreement was never made between any of the Flat buyers and the Builder (for this project). Builder has not given any breakup for the final amount we have paid to him, i.e "Price inclusive of everything".
The builder now says he had wrongly calculated and collected less VAT from us (5%), based on some reference. He has not specified anything about the VAT amount or percentage he has paid to the Tax department, in the Sale Deed or Agreement of Sale.
In fact it has been mentioned in the Sale Deed and the Agreement "Amount inclusive of all expenses and the amount is free from all encumbrances.
Possession of the Flat was taken on the date of registration itself i.e 22nd Feb.2013. It has been mentioned in the possession certificate like Buyer has paid all the dues and no amount is due. Still the builder is asking more money.
Now the builder is demanding more from us as VAT. He is saying that he had wrongly calculated and collected less amount as VAT for everyone and it will be more since the rule is changed in Jan 2013 as per section 74(1).
It has been mentioned in the notice he has posted on the Notice board of the Apartment like "Government is asking the builder to pay 14.5% VAT on the registered amount of Flat (which includes the base price + BWSSB changes + Land cost + BESCOM charges+ labor charges + Water connection charges + Charges of all other amenities).
Due to his mistake we are impacted. If he had told this earlier, probably we would have dropped the idea of buying a flat. Since the price of flat + stamp duty + 14.5% VAT altogether would have appeared to us more than our budget. We are unable to pay now since our pocket is almost empty. Whatever we are earning, we are managing for EMIs and daily expenses.
Thanks & Regards