Builder delayed possession now asking to pay VAT on property

510 votes

Nobody shall be entitled to pay any VAT on pre construction of property. In your case, the possession has been delayed by the buyer which would mean that builder has not completed the construction work on time and now in order to delay the possession of the property he is making unnecessary demands. In such case you shall be entitled to approach the court seeking for specific performance of the contract that was executed between you and the builder meaning thereby that the court will seek necessary directions against him to perform his part of the contract.

Advocate Siddharth Gupta LawRato

747 votes

Haryana has imposed VAT on property with retrospective affect from 2010, thus the delayed possession in your case would not be a reason to not pay VAT. However, the whole issue regarding VAT is not yet settled including calculations, retrospectivity, etc. It would be my suggestion that all of you buyers get together and take a unified decision to speak to your builders to wait until there is full clarity on the issue before you shell out money on account of VAT.

Advocate Rohan Mittal LawRato