Service tax liability on part payment before completion cert


Hi,

I bought a flat in pune recently. I had paid 20% of total amount before completion cetificate (architect certificate) was issued to builder. However Agreement Registration was done 3 days after getting the completion certificate. Rest of the 80% amount was paid after completion certificate was issued and registration was done.

Can someone please confirm about my service tax liability? will it be on total amount or it will be on just 20% which i had paid before completion certificate was issued to builder?

Thanks

 
Reply   
 

HI,

 

I have booked flat in pune in 20 july'2011 and agreement done in the 20 aug'2013.my agreement value for flat is 4106000 and service tax-Rs 105935 & vat –Rs  41060.Hence Total Amount is Rs 42, 52,995 /-.

i have done my full payment in 29th Aug'2011 only.at that time flat is under construction.

Now flat is completted and ready for Possession in Aug'2013.

Now bulider demand for more service tax stating that "The Service Tax rate has increased from 01/04/2012 from 2.57% to 3.09%".

Can someone please confirm about my service tax liability.

will they charge service tax from me now.

please 

regards,

 

 

 

 

 

 

 

 
Reply   
 


Lawyer in Hyderabad.wats app no.9989324294

  • The low-cost housing segment (property worth less than Rs. 20 lakh) will be exempt from service tax when the same is rendered as part of Jawaharlal Nehru national Urban Renewal Mission (JNNURM) and Rajiv Awaas Yojana. The taxable service of construction of complex in the context of these two development schemes have been kept out of the ambit of service tax.
 
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My property worth more than 20 lakh. I wanted to know my service tax eligibility. I had paid 20% of overall amount before completion certificate was issued while rest 80% was paid to developer only after completion certificate was issued. Also, point to note is that my aggreement was registered after completion certificate was issued.

 
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Lawyer in Hyderabad.wats app no.9989324294

No need to pay service tax after obtaining of completion certificate. It means no tax on ready made property purchase.

 
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Is service tax eligibility decided on Flat booking date or on Agreement registration date? I mean which date (booking date or aggrement registration date) is taken as reference while checking if service tax applicable or not?
 
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