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Sudheer Veeravalli   17 December 2015

Service tax for purchasing flat land owner share

Hi Forum, i am planning to purchase a constructed flat in hyderabad. It is the land owner share. I am confused now if I should pay the service tax (if yes how much) - as I am hearing different answers. When enquired other owners in the same building, who purchased from other land owners they haven't paid any service tax. Please guide me in the right direction. Thanks a lot in advance- sudheer


 1 Replies

K.S.NAVEEN KUMAR   23 December 2015

Since it is already constructed flat, which is ready for occupation, the transaction would be in the nature of sale of immovable property, which should not attract service tax liability. Also see the definition of 'service' in section 65B(44) of the Finance Act, 1994 (ST law), which excludes an activity involving transfer of title in immovable property. 

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