• Kvat on sale agreement

Dear Sir,

We booked an under-construction flat in april 2013, for which possesion was expected in Dec 2013.
There were 2 agreements done by the builder:

1. Agreement to Build (Cost approx 36 lacs)
2. Agreement to sale (18 lacs)

We cleared all the payments to the builder in March 2014 including registration/stamp duty and all applicable taxes as asked by the builder. VAT was calculated on agreement to build value i.e. 36lacs.

After getting the possession in April 2014, we have recieved a letter from the builder asking to pay VAT on Sale agreement Value also u/s 39(1) of KVAT. This Amount is calculated as 10% of sale agreement value by the builder.

Pls Suggest whether its a valid demand from the builder? And also is the calculation of this tax is correct.

Registration was done on December 2013.
Asked 2 years ago in Property Law from Bangalore, Karnataka

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Property Lawyers

T Kalaiselvan
Advocate, Vellore
15220 Answers
138 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
24623 Answers
1320 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18828 Answers
472 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12698 Answers
261 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5810 Answers
63 Consultations
4.9 on 5.0
Atulay Nehra
Advocate, Noida
520 Answers
18 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2871 Answers
43 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
915 Answers
54 Consultations
5.0 on 5.0
Ajay N S
Advocate, Ernakulam
1943 Answers
19 Consultations
5.0 on 5.0
Thresiamma G. Mathew
Advocate, Mumbai
1323 Answers
89 Consultations
5.0 on 5.0