The builder is asking for VAT

Q: Builder has not yet completed club facilities, for which payment was made @ possession in jan 2010. He demands amount from all of us for VAT... under the liability clause inserted by him in agreement. his aprt of agreement has not been complied with...req advice

deepak, Mumbai

13th October 2012

Legal in Mumbai

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I've heard that recently there was a judgement passed in favour of government to take 5 % VAT on properties sold in Mumbai from 2006 July 01 to 31st dec 2012. I'm my society also builder has sent notices to us for paying the VAT approx 2 lacs.
But I dont understand why & who will pay .. the Builder should pay if government wants something they forgot to take . Why should a common man pay 5 % VAT for the property he bought ? Also what if the property is sold to 3rd party or the party to who property was sold is not existing or is out of India or things like that ? How can the builder demand money from the buyer now for something bought around 6-8 yrs back .. sounds like another scan which needs legal advice in this forum