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Property related VAT/ST payments what to do


20-Feb-2023 (In Property Law)
Hi, i recently purchased an apartment and since i paid in full by cash - I was told VAT and ST not applicable. At the time of sale deed registration, the builder's lawyer said it is not possible to show entire amount as cash or it will impact the builder financially and asked to provide them with a few cheque leaf numbers and bank branch name so they can show some amounts paid by cheque but i flatly refused. So, they added a clause in my sale deed that states I have not paid VAT/ST and i signed it becase on asking if there would be legal/IT implications, they said that it was not my responsibility to pay VAT/ST rather the builder. On checking with another lawyer, i got to know that if govt. comes checking i will have to pay VAT/ST if builder refuses. Just here to check for additional opinions. Thanks!
Answers (2)

Answer #1
779 votes
As the sale deed was registered after you signed it and you read the said clause of non-payment of VAT/ST. you can challenge it both before the Civil Court and in the Criminal Court on the ground that your signature was obtained under misrepresentation, fraudulently and by cheating. It is also possible to file a case for breach of trust.
Answer #2
589 votes
VAT and ST is builders responsibility..The VAT and ST is paid by the builder for the entire project not for individual flats. I have gone through the circulars but they are applicable for builder not for an individual flat buyer.It is not necessary but if the builder is accepting this amount in cash then in all probability he will not deposit the same with Govt therefore he is misleading you... I will suggest you to pay only if builder accept cheque and issue proper payment receipt at the time of payment...further details contact us thank you..

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