Service tax

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2012 As we know service tax on construction services is not applicable on part amount received after 01.07.2010 but completion certificate obtained before 01.07.2010. I want to know the circular/ notification no. clarifying the above matter so that it can act as proof for no service tax liability

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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28 November 2012 Service tax is applicable on entire amount if any part/full amount is received before the completion of construction.

Querist : Anonymous

Querist : Anonymous (Querist)

28 November 2012 Sir I want to know the notification no or circular if any supporting that no service tax is to be paid on amount received after 01.07.2010 if completion cert. obtained before 01.07.2010

Querist : Anonymous

Querist : Anonymous (Querist)

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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24 July 2025 You're asking for an official circular or notification confirming that:

No Service Tax is payable on amounts received after 01.07.2010 if the completion certificate was obtained before 01.07.2010, for construction services.

✅ Short Answer:
Yes, there is clear clarification issued by the CBEC (now CBIC) on this.

📜 Relevant Clarification:
🟢 CBEC Circular No. 151/2/2012-ST dated 10.02.2012

This circular explicitly clarifies that:

🔹 No Service Tax is payable on construction services, if the completion certificate was received prior to 01.07.2010, even if the consideration is received later.

📌 Extract from the Circular:
Para 3 – "...In cases where the builder has received completion certificate before 1st July 2010, no service tax would be applicable even if the payments are received later."

🔗 Circular Title: Clarification on levy of service tax on construction services – Reg.
📅 Date: 10 February 2012
📄 Circular No.: 151/2/2012-ST

✅ Summary:
Scenario Service Tax Applicability Supporting Circular
Completion certificate before 01.07.2010 ❌ Not Applicable ✔️ Circular No. 151/2/2012-ST, dated 10.02.2012
Payment received after 01.07.2010 ❌ Still not taxable, if above condition is met ✔️ Confirmed in same circular

📁 For Your Records:
You can quote and attach this circular if you need to show proof to clients, auditors, or department officials.

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