Is the demand for VAT legitimate when i have already paid NOC charges.

Q: I bought a flat in 2008 and last year i sold it.
The builder charged me Rs 50000 for NOC for sale of house.
Now the VAT decision has been out and he wants me to pay Rs~30000.

Is this legitimate request from his side because i see that 50000 is a huge amount when it comes to NOC where in the builder has to do nothing.

nwishs, Pune

5th March 2013

Other in Pune

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Replies (3)

Hey.. i would suggest you to bring to the notice of the government instances of government offices or officers asking for an NOC during sale or re-sale of flats. take legal help..

Uday kumar, Chennai

6th March 2013

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Thanks Uday for the reply. Do you know since when this law was enforced so that I can drag the builder to court

nwishs, Pune

7th March 2013

As per a national daily which had quoted Maharashtra CM last year, it will not be mandatory for flat-owners and housing society residents to get NOC from builders while selling or transferring their property..There is no such provision in the Maharashtra Ownership of Flats Act ( MOFA)..

Shrikant Kejriwal, Mumbai

6th March 2013

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Hi.. even I had paid 5% as the builder was not ready to give possession.. The reason being, I didnt clear my dues. The Sales tax department has made it clear that VAT is charged on the materials used for construction and excludes land price and hence comes to 1.5 to 3.5% of the total value of the apartment.

Shantanu Kumar, Mumbai

6th March 2013

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