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Applicability of service tax on builders

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This query is : Resolved

SHALINI JAIN (Querist)
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15 November 2011 Plz can anyone confirm whether service tax is attracted on balance payments received from customers after 01.07.2010 where the Residential project is completed before 1st july 2010, booking and registration made before completion of project i.e before the builder has got the completion certificate.

PUNEET GOYAL

PUNEET GOYAL (Expert)
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20 November 2011 As per second proviso to Rule 6 of Service tax Rules 1994:-
Provided further that notwithstanding the time of receipt of payment towards the value of
services, no service tax shall be payable for the part or whole of the value of services, which
is attributable to services provided during the period when such services were not taxable.

The above proviso has been omitted by NN 03 dated 01.03.11 wef 01.04.11.

In your case it appears that service tax will not attract.

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