Service tax on builders of residential complex

This query is : Resolved

Prabhat Dhandhania (Querist)
Follow

20 September 2016 One block of a residential group housing complex of 4 blocks has been completed and few flats have been registered in favour of the purchasers who have paid service tax to the builder during construction stage and at time of registration. No OC/ Completion Certificate has been issued to builder. My query is:

1.Will further new sale of flat in the same completed block will attract service tax or an exemption can be taken citing date of registration as completion date?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 September 2016 No service tax applicable on flats purchased after issue of completion certificate.

Prabhat Dhandhania

Prabhat Dhandhania (Querist)
Follow

20 September 2016 Completion Certificate not received but possession and registration completed of some flats. Can flat registration date be treated as 'date of completion' of the tower and further sales in the same tower will not attract service tax in absence of 'Completion Certificate' by a Government authority? Further can a Completion Certificate issued by a registered surveyor, architect will serve the purpose?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 September 2016 Yes completion certificate issued by registered surveyor/architect will serve the purpose.

Prabhat Dhandhania

Prabhat Dhandhania (Querist)
Follow

20 September 2016 Fresh bookings in the same building will not attract service tax after taking CC from registered surveyor right?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 September 2016 Yes you are right....................

Prabhat Dhandhania

Prabhat Dhandhania (Querist)
Follow

20 September 2016 Thanks a lot. Regards,
Prabhat

Prabhat Dhandhania

Prabhat Dhandhania (Querist)
Follow

20 September 2016 Sorry to open the discussion again. The Act says that the Completion Certificate is to be issued by a Competent Authority. Can a non govt body like a registered surveyor be considered as a Competent Authority?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

20 September 2016 Yes he can be considered as competent authority.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now