service tax on commercial property purchase

Anit Kumar (Querist) 12 February 2014 This query is : Resolved
We purchase fully constructed commercial Property, we are liable to pay service tax

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Devajyoti Barman (Expert) 12 February 2014
Yes, it has become mandatory now.

Rajendra K Goyal (Expert) 12 February 2014
You have not mentioned full facts, from whom and how you are purchasing the property.

Please contact your tax consultant.

R.V.RAO (Expert) 24 February 2014
serv.tax @12.36% is payable,if there is a notified chargeable service, if service provider is regd.under serv.tax act with serv.value beyond exemption limit of Rs 10 lacs P.A .
iam of the view that if builder already obtained a completion cert. and then sold the property to you ,there is no service.tax.
it is only sale attracting vat.
on the other hand,if the property is sold and regd.in your name first and then if the builder obtains completion cert.,then you are liable to pay serv. tax.
There is an abatement of 70%. in other words you have to pay serv.tax of 12.36% on 30% value(sale deed regd.value) of the commercial property .

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