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Rahul (Project Manager)     02 November 2012

Almost ready possession flat: service tax query

Hello Sir,

I registered my flat on 14-Feb-2012, took possession on 15-Mar-2012 and the completion certificate that the builder has is of date 30-Mar-2012.

I have already paid the service tax, and now the builder is asking for VAT as well.

Since there is merely difference of 15 days between my possession and the completion certificate, was it right for the builder to ask for service tax? It is ok for him to ask for VAT as well?

Against the service tax payment, builder gave me only a amount received receipt. Should I get a receipt from government body?

Please suggest.

 3 Replies

ankur tripathi (Asst Manager)     02 November 2012

After apr 2010 any residential flat purchased in a underconstruction property where the oc is not received attracts VAT and S-tax . S-tax is only applicable in a underconstruction property. if u have purchased a ready property than the S-tax should not be applicable. In regards to Vat yes it will be payable. You can ask for S-Tax Challans from the builder for your flat.

Sopan (MANAGER)     17 March 2013

Hello Sir,

I am Purchasing a Falt in Pune where building is ready for more than a year & This Flat was sample flat which builder has open for sales now. As OC has received but society formation is due in April. Builder told me that there would not be any VAT or Service tax on this property as OC has received.

But when i gone through agreement draft, Clause of "


MVAT, Works Contract Tax, Goods and Service Tax plus other taxes/levies etc. if applicable shall be extra payable by the customer

When i have asked to Builder they said it is their standard format used for all other buyser who buyed flat at construction stage or before OC recieved. And they will use same format for me. Also added that if government claims this amount in future on flat sold after oc recived then I have to pay it.


Please guide me whether i amy need to pay these extra taxes in future?

Did I need to get changed agreement (seems difficult)

Ajit Nandgude (MD)     18 August 2013


I am builder & I have completed my project in pimpri chichwad. Part Completion certificate received

Now I want to Know Is vat and service tax applicable for customer ? .

I have asked CA he told applicable but customer is saying Not applicable .



Ajit Nandgude

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