your agreement with builder must be containing clause that you would be liable to pay Vat it is your obligation to pay MVAT to builder as you bought an under construction flat from builder. As per ruling of Honorable Supreme Court of India, the sale of under construction flat / property is liable to pay VAT.

2)As per rule 58 of the Maharashtra Value Added Tax Rules, 2005

the sales price may be determined after deducting from the

agreement value; the value of land, labour, chargers for planning,

designing, architects fees, hire charges of machinery etc. The tax is

computed on the value arrived as above. The tax computed as

above is reduced after considering the tax paid on the purchases of

building material (i.e. input tax credit). The tax so determined is

required to be finally paid.

3) in mahrashtra state govt has launched composition scheme for builders wherein vat has to be paid at 1 %of contract value of the flat

1. Was it a completed flat that was being sold to you, or it was an under construction flat? VAT is payable in respect of under construction flat and dwelling units.

2. If the agreement executed before 1.11.2015 is also registered before this date then no VAT is to be paid. If the sale is after completion i.e the sale is of an immovable property there is no levy of VAT.

3. VAT is to be paid by the builder to the authorities, but he will debit it to you.

The MVAT shall be paid by the builder to the authorities but he has to recover the same from you alone because you only have to bear the expenses incurred to your property.

responsibility of builder is to deposit the VAT and Service Tax with govt.

builder recovers the VAT from flat purchaser as per agreement

Paying of VAT is the duty of the person running a business.

If the builder is insisting the VAT then it becomes his duty to produce the receipt for VAT payment.