Legal Eye
Hidden costs?
I have booked a flat in an under construction property that is likely to be completed next year. Almost 80 percent of the agreement value is paid during the progress of the construction. From what I understand, on the balance payment, GST would be applicable, thus increasing my payout by six percent.
1. Can this be reduced or avoided?
2. Is the builder right in charging more? Also, how can he pass on the benefit of input tax credit?
— Pankaj Daptardar
The increase in cost on A account of GST cannot be avoided. If it is provided in the agreement for sale that any tax levied by the government is payable by the purchaser, then in such an event, the builder would be justified in charging you the GST. However, it is provided in the Central Goods and Services Tax Act, 2017 that any benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. Hence, the builder should pass on the benefit of input tax credit by reducing the price and to that extent, you can get relief.
General body meeting, on special request?
Under what circumstances can a housing society call for a Special General Body Meeting? — Dhwani Shah
As per the model by- A laws, a Special General Body Meeting of the society may be called at any time at the insistence of the chairman or by the decision of the majority of the committee. It should be called within one month of the date of the receipt of requisition, in writing and signed by at least 1/5th of the members of the society/Registering Authority/Housing Federation, to which the society is affiliated. During the meeting, no business other than that mentioned in the notice of the meeting shall be discussed. The requisition for the meeting shall be placed within seven days of its receipt before the meeting of the committee by the secretary of the society. Five clear days' notice shall be given to all members of the society. If it's an emergency, the meeting can be called even at a shorter notice if the committee unanimously decides to do so.
