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
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Can the builder file a summary suit when he has not provided a legitimate breakup of VAT calculated under rule 58 1 a and b , tax invoice , or proof of payment of vat ,
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
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
Is the obligation to pay tax valid for infinity ? When does limitation of 3 years apply to such a situation . The first right to sue should have accrued in Dec 2012 when he first asked and we declined . ?
1) period of limitation would commence from December 2012
2) suit should have been filed within period of 3 years from said date