1) builder would deduct around Rs 3 lakhs .
2) you have paid 20 per cent of sale consideration ie Rs 13 lakhs . thus total consideration of flat is around Rs 92 lakhs
3) 3%of total cost would be around Rs 3 lakhs or so
Refund money from builder
We have booked a flat in the month of October 2016. We have paid 20% amount of total flat. Now we want to cancel the booking. As per sale agreement the clause mentioned as below: The developer shall refund to the purchaser herein the earnest money and or advance paid by the purchaser to the developer till then after deduction of a sum equivalent to 3% of the total consideration amount as and by way of pre determined service charge. Now my question if I deposited 13 lacs as 20% amount how much they will deduct.
Asked 7 years ago in Property Law
Religion: Hindu
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5 Answers
If there is refund clause after 3% deduction then the 3% as per the terms is to be calculated out of total price of the flat which is highly exorbitant and unconscionable.
However do insist to calculate 3% out of 13 lakh only and if the builder does not agree then file a case in the consumer forum.
This will remain your only last option as in such cases the purchasers mostly get desired results.
If you need my assistance in this you may contact me freely.
My property value is 62 lakhs. As per builder he will deduct 3% plus 15% of service tax of total value. As per them they have already deposited total service tax to govt and which is non refundable. Is it true?
Asked 7 years ago
1) the Builder has to refund you the Service Tax amount on cancellation of Flat
the concerned service provider can make adjustment of excess payment of Service Tax in terms of Rule 6(3) of Service Tax Rules, 1994 which is given below for ready reference:
[(3) Where an assessee has issued an invoice, or received any payment, against a service to be provided which is not so provided by him either wholly or partially for any reason,
[or where the amount of invoice is renegotiated due to deficient provision of service, or any terms contained in a contract]
the assessee may take the credit of such excess service tax paid by him, if the assessee, (a) has refunded the payment or part thereof, so received along with the service tax payable thereon for the service to be provided by him to the person from whom it was received;
(b) has issued a credit note for the value of the service tax not so provided to the person to whom such an invoice had been issued.”]
First of all you have not mentioned that whether there was a sale agreement entered between you and the builder and whether the same was a registered deed.
Presuming it to be a proper and valid document, the deductions if exorbitant, you may protest and issue a legal notice demanding your entire money for which he will correct or refuse, you can proceed legally.
If the service tax has been deducted and you are given the confirmation, you can very well demand the details of payment of service tax to the government.
If the condition to deduct 3% on the booking amount was agreed by you then you may have to honor the commitment.