Builder Related

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CA Tejas Andharia (Querist)
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02 June 2011 If some complex has 10 residential unit and 5 commercial units, then builder is liable to service tax?
Second Question : Suppose out of 14 residential units in particular project, 10 units are sold by installments under which payments are made during construction phases, but 4 units are sold after getting completion certificate, then builder is liable to service tax?

CA Ankit Gulgulia (Jain)

CA Ankit Gulgulia (Jain) (Expert)
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02 June 2011 I - It Depends on How Local Authority treats Such Complex

II - Yes , it is Liable To Service Tax , Only way ST would not be Applicable is When All the amount is received after Completion of Construction as Per Certificate issued by competent authority.

CA Tejas Andharia

CA Tejas Andharia (Querist)
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02 June 2011 Thanks Mr. Ankit.

In first answer u said "It Depends on How Local Authority treats Such Complex". Here would u clarify how local authority clarify us the way it treats such asset. Local authority may treat it as residential-cum-commercial complex, then in that situation what should we do?
And would u pls. intimate me your email ID? mine is tejasinvites@gmail.com

CA Tejas Andharia

CA Tejas Andharia (Querist)
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01 August 2011 Thanks Mr. Ankit.

In first answer u said "It Depends on How Local Authority treats Such Complex". Here would u clarify how local authority clarify us the way it treats such asset. Local authority may treat it as residential-cum-commercial complex, then in that situation what should we do?
And would u pls. intimate me your email ID? mine is tejasinvites@gmail.com

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