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Vat and service tax on real estate property in karnataka

Kartik (Analyst) (33 Points)

26 August 2016

Hi All, Is VAT and ST applicable on under-constructed properties in Karnataka? If yes, will it still apply if the property is registered after the completion certificate is received, although the advance payments have been already made?

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sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 26 August 2016

Deemed VAT and service tax applicable on property under development but once completion certificate is received from Goverment authorities or panchayats you need not charge service tax

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Kartik (Analyst) (33 Points)
Replied 26 August 2016

Thanks Sivaram. But if there are any advance payments that have been made before receiving the completion certificate will they be subject to VAT and ST?

Kartik (Analyst) (33 Points)
Replied 26 August 2016

Thanks Sivaram. But if there are any advance payments that have been made before receiving the completion certificate will they be subject to VAT and ST?