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Author Topic: Builder charging Interest and Penalty on MVAT  (Read 826 times)

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Offline mgamane

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Builder charging Interest and Penalty on MVAT
« on: January 24, 2015, 01:42:29 PM »
Dear Friend,

Need a legal advise on this below question.

I bought an under-construction apartment from a builder. In the agreement, Builder had stated this clause :
" I agree and undertake to pay Service Tax / Maharashtra VAT (work contract tax) and / or any other Tax if leviable on sale / purchase of flat (even if it is on retrospective  effect)"
When I signed the agreement, the MVAT was not asked by the builder and hence we did not pay the same and received OC. The Agreement was signed first in Sep'06 and then we received OC. We are staying in that appartment for more than 8 years and now builder is sending legal notice to pay MVAT (referring to Honorable Supreme court court date 26 Sep 2013) and is also demanding the interest from Aug'2010 to May'2014 and high penalty amount.

Please advise if I should pay the MVAT in such case ? Does builder have right to demand interest and penalty ?



Offline user9999

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Re: Builder charging Interest and Penalty on MVAT
« Reply #1 on: March 01, 2015, 05:02:52 AM »
if you feel you have all facts on your side and not entitled to pay..and  if he had already initiated a legal action on this ...try to respond to the legal notice ..no need to pay..

 

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