• VAT on Flat for which possession given in 2008

Our contract has a clause that reads as under . Agreement was signed in Feb 2008  and possession  taken in october 2008. 

1. Can  he claim  VAT after so many years . is this a surviving clause that  is perpe
2. is this a surviving clause thats perpetual or limitation applies . if so when . 
    He gave a  demand note witout any computation in 2012 which we declined to pay . 

In addition to the agreed consideration and other charges mentioned here in   the service tax payable to the central government / state government or any other  or additional taxes / charges / levies   as and  when levied on the sale of this flat  shall be borne and paid by the purchaser alone . It is hereby  specifically agreed by the parties hereto that the liability of the purchaser to pay the above service tax  shall remain in force even after the developers have handed over the possession of the said flat to the purchaser  and at no point of time the developer shall be liable  to bear  all pay  the same in any manner whatsoever
Asked 3 months ago in Property Law from mumbai, Maharashtra
Religion: Hindu
5 per cent VAT was leviable on flats purchased between June 20, 2006 and March 31, 2010

2) s per ruling of  Supreme Court, the sale of under construction flat / property is liable to pay VAT. 

3)VAT & Service tax should be specifically mentioned in the sale agreement and which party will bear this cost. in your case it is specifically mentioned that purchaser shall bear additional taxes/ levies

4) you are entitled to demand basis of computation of demand made by builder
Ajay Sethi
Advocate, Mumbai
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you can in your reply take the plea that inspite of request no computation was provided by the builder as to how the VAT amount was arrived at . no evidence f was submitted as to payment made by the builder 
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
1) period of limitation would commence from December 2012 

2) suit should have been filed within period of 3 years from said date
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0

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