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Nitin Bisht (Director)     07 August 2013

Finance act2010 notification no. 24/2010 dated june 22 2010

Hello Experts,

 

i need to know about the purchase of a under construction commervcial (Greater Noida,UP) property attarcts a service tax 3.708% w.e.f 1st March , 2013 on the total amount paid ,is it correct and the updated slab and how can we check if the service tax is been paid to the government like what letter i will get from the developer and how to check the same in the gorvernment portal.

Please also check the relevant document of the same

Regards

Nitin Bisht



Learning

 3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 August 2013

It should be noted that the service tax would be levied only on under construction property. A property is considered “under construction” till the builder receives a “completion certificate” from the relevant authorities. 3.34% on total amount paid is correct. But not as you said.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 August 2013

if an amount for the purchase of a property is paid to the builder before he obtains a completion certificate, it would be subject to service tax. Only if theentire amount for the property purchase is paid after the receipt of a completion certificate, there would be no levy of the service tax.

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 )     07 August 2013

It would be naive to assume that the builder would absorb this burden and pay the tax. Of course, the onus of paying this tax is on the builder. So, you would not have to go through the hassle of paying it.


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