Mr. sambhav (Manager ) 21 August 2015

Vat and service tax charged on completed flat by builder

Subject : Service tax and VAT on completed property in Pune

Message :
Dear All, recently I have purchased a property in Pune and the completion certificate ( Bhogawata patra ) was given by Pune Mahanagar Palika in June 2014. The property was registered with the sub registrar on 21st June 2015. The builder has charged me service tax and VAT for the property which was completed earlier . Can you please guide me in this respect whether I can claim back the service tax and VAT from the builder as I came across a article recently that says the builder can not charge VAT and service tax on a completed construction after receiving the completion certificate. Thanks ,

S. S. Joshi

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1 Replies

Kuldeep Rawat (Inspector) 22 August 2015

As far as Service Tax is concerned, the builder can charge ST only during construction of the flats. on sale of ready built flats there is no provision of Service Tax, Selling of a ready built flat amounts to simple sale, no service tax can be charged by the builder on these inventories.