If the land is jointly developed by the land owner and the builder for apartments;can owner collect VAT & SERVICE TAX

Q: If the land is jointly developed by the land owner and the builder for apartments;while construction is still going on ,if the land owner goes for sale for his share ,can land owner collect VAT and SERVICE TAX from the buyer?

Pravahya,

28th November 2013

Property Tax in Whitefield, Bangalore

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If the land owner goes for sale for his share, that is you, then you and new buyer has to come up with mutual agreement between builder because in the future new buyer will have to deal with the builder. VAT and SERVICE TAX are applicable for sale of under-construction property but the builder has to collect the same and pay to govt. I would suggest, you discuss this with your builder to know and a legal expert for smooth closing of the deal.