service tax
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
30 October 2010
Dear Sir,
My client Booked a shop in India Bulls Scheme on 25/05/2009 and continuied deposite fund on their demand but agreement of sale not made till date becoause company issue agreement to who is apply to loan.
I am asking that service tax liable for me or not.
My client Booked a shop in India Bulls Scheme on 25/05/2009 and continuied deposite fund on their demand but agreement of sale not made till date becoause company issue agreement to who is apply to loan.
I am asking that service tax liable for me or not.
30 October 2010
Question is not clear what service and who is providing the service. Where is nature of services. Your client is purchasing a property through india bull, then where is the question of service tax.
Really, i am not clear abot the question.
Really, i am not clear abot the question.
24 July 2025
Based on your original query and the reply you received, here is a clearer explanation of the service tax liability as it would have stood around 2010 (based on rules applicable then):
📝 Summary of the Situation:
Your client booked a shop in the India Bulls scheme on 25/05/2009.
They have been depositing funds as per the developer’s demand.
No sale agreement has been executed yet.
The builder/developer issues the sale agreement only to loan applicants.
You are asking whether service tax is applicable in this case.
🔍 Key Legal Points (as per Service Tax Law in 2010):
Service Tax on Construction of Complex Services:
Prior to July 1, 2010, service tax was not clearly applicable on construction of individual residential/commercial units if the agreement was for sale of immovable property and the developer built it on their own.
After July 1, 2010, service tax became applicable on under-construction properties if payment was received before completion certificate, under the category of "Construction of Complex" services or "Commercial or Industrial Construction".
Booking Before Completion:
If the buyer books the property and makes payments before the completion certificate is issued, and no formal sale deed is executed yet, the transaction could be considered a service rather than a sale of immovable property.
In such a case, service tax may be applicable on the amount paid (on a proportionate basis), especially after 1 July 2010.
Service Tax Liability:
The builder/developer is responsible for charging and collecting service tax from the buyer.
Your client, as a buyer, would not directly pay service tax to the government, but may be charged by the builder.
✅ Answer to Your Question:
Yes, service tax could be applicable on payments made after 1 July 2010, provided:
The property is under construction.
Your client made payments prior to completion of construction.
The agreement to sell (or booking confirmation) was made before the completion certificate.
No service tax would have been levied:
On payments made before 1 July 2010.
Or if the entire payment was made after completion certificate is issued.
📌 Note:
The key factor is whether the property was under construction and whether payment was made before the completion certificate. The absence of a formal agreement complicates things, but if payments were accepted and the property is being constructed, it still may fall under the scope of taxable construction services.
If you want to confirm the exact liability, it would help to:
Review the date-wise payment schedule.
Confirm whether a completion certificate was issued.
Check if India Bulls charged service tax on invoices.
📝 Summary of the Situation:
Your client booked a shop in the India Bulls scheme on 25/05/2009.
They have been depositing funds as per the developer’s demand.
No sale agreement has been executed yet.
The builder/developer issues the sale agreement only to loan applicants.
You are asking whether service tax is applicable in this case.
🔍 Key Legal Points (as per Service Tax Law in 2010):
Service Tax on Construction of Complex Services:
Prior to July 1, 2010, service tax was not clearly applicable on construction of individual residential/commercial units if the agreement was for sale of immovable property and the developer built it on their own.
After July 1, 2010, service tax became applicable on under-construction properties if payment was received before completion certificate, under the category of "Construction of Complex" services or "Commercial or Industrial Construction".
Booking Before Completion:
If the buyer books the property and makes payments before the completion certificate is issued, and no formal sale deed is executed yet, the transaction could be considered a service rather than a sale of immovable property.
In such a case, service tax may be applicable on the amount paid (on a proportionate basis), especially after 1 July 2010.
Service Tax Liability:
The builder/developer is responsible for charging and collecting service tax from the buyer.
Your client, as a buyer, would not directly pay service tax to the government, but may be charged by the builder.
✅ Answer to Your Question:
Yes, service tax could be applicable on payments made after 1 July 2010, provided:
The property is under construction.
Your client made payments prior to completion of construction.
The agreement to sell (or booking confirmation) was made before the completion certificate.
No service tax would have been levied:
On payments made before 1 July 2010.
Or if the entire payment was made after completion certificate is issued.
📌 Note:
The key factor is whether the property was under construction and whether payment was made before the completion certificate. The absence of a formal agreement complicates things, but if payments were accepted and the property is being constructed, it still may fall under the scope of taxable construction services.
If you want to confirm the exact liability, it would help to:
Review the date-wise payment schedule.
Confirm whether a completion certificate was issued.
Check if India Bulls charged service tax on invoices.
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