I recently bought a flat in Faridabad, and the builder is asking for VAT tax on top of the purchase price. Is this legal? Also, they’ve increased the area of my flat by 225 sq ft (total super area was 900 sq ft) and are now selling it to me as a “dry terrace.” This terrace is basically a shaft with one side connecting to the common gallery and the other to the common entry, and it’s adjacent to my kitchen wall. My question is, do I have to pay for the entire dry terrace, or will it be considered a common area shared by all units in the building?
Best Answer
In India, VAT on real estate is generally applicable, so the builder can legally charge it. Regarding the dry terrace, its classification as common area or exclusive depends on factors like its accessibility, usage, and construction details. You should consult a lawyer to examine the specific construction plans and relevant building bylaws to determine if you are legally obliged to pay for it.
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