dr adarsh yadwad (consultant) 15 April 2014

Service tax for apartment issued occupancy / completion cert

i've recently bought a flat by making an agreement on 31.03.14,token amount was debited frm my account on 2.4.14 n builder got his completion/occupancy certificate on 2.4.14,we executed the saledeed/registration on 10.4.14 at sub-registrar office.....builder has collected money for service tax,do i've to pay service tax?

since the builder got his occupancy/completion certificate prior to our registration,there should be no service tax right?

pl help

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A.R KINTADA (PROFESSOR) 08 March 2015

Dear expert team,

I have a query on service tax on purchase value of a flat..

I bought a flat in Bheemili of Visakhapatnam district.At the time of entering in to agreement, the builder suggested that if I get the flat registered after completion, service tax need not be paid. So I waited with out registering.However I made payments periodically. Now the flat is nearing completion.

The builder now says that since the payments have been made progressively during construction, they attract service tax and I have pay the same @3.09%.

I browsed the web and found this site where in one of the articles, I read that if the value of the property is less than 20 lakhs,service tax is not applicable.The value of my flat is Rs. 13,00,000/=.Do I need to pay the service Tax?

Pl advise me so I can approach the builder authentically.