who have bear the service Tax and VAT -BY THRE CUSTOMER / BY BUILDER

Hi,
As State-VAT is an indirect tax, generally passed on to the buyer, the flat buyer would now bear an additional tax. For buyers who were already charged VAT, the judgment now assures them that it is payable. But the buyers who were not charged VAT should check whether the builder has inserted appropriate tax clauses in the under-construction agreement to recover VAT dues. Generally, builders have been prudent to insert such clauses. Thus, buyers who were not charged VAT on under-construction flats may now have to bear the additional cost (which was not considered at the time of financing the purchase through banks/ financial institutions).