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umakant (Partner)     09 March 2015

Liabilty of service tax

Dear All


I would like to know that in case we have purchased a residential flat after completely constructed but before issue of completion certificate from competent authority. In that case whether i am liable to pay service tax.

Kindly reply urgently




 3 Replies

Anand Bali Adv. (Advocate Solicitor & Consultant)     09 March 2015

Dear Client,

In fact the Service Tax is to be deposited by the service provider, who has built your house. However, this tax is further billed to the customer consumer and after realisation from his side the concerned tax amount is to be deposited in the Service Tax head of the Government treasury.

So under this light , you have to pay the service Tax before the completion certificate is taken from the competent authority of the area.

For further legal assistance on nominal charges, you can contact me on below mentioned address and Phone number, Please call after Court hrs to get a suitable appointment date and timing.

Advise, always take assistance from an experienced and well educated Advocate of the field. You can see my credentials on this very site for my appraisal.

for Anand Bali & Associates

Anand Bali, Adv.
(B.Com., M.A., LL.B., M.B.A.)
Supreme Court Of India,
High Courts of Delhi, Chandigarh, UP & UK.
For Civil, Criminal, Property, Recovery, Consumer,
Service, Divorce & Family Dispute Matters

T. Kalaiselvan, Advocate (Advocate)     12 March 2015

The service tax is liable to be paid by the purchaser especially in the event of newly constructed house/flat.  The rate  of tax to be enquired, which is around 3% or little more.

C. P. CHUGH (Practicing Lawyer)     12 March 2015

No Service tax is attracted on the Sale/Purchase of Immovable Property, irrespective whether such property has been issued occupation certificate by competent authority. What matter is whether such property was construction for and on behalf of the buyer, meaning thereby whether it was agreed to be purchased before construction and part of consideration was paid before the construction is completed. In such event the sale of Property amount to execution of works contract leading to providing of taxable services. Applicable rate would apply. Thanks

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