Service tax on House Property

Save Share

This query is : Resolved

Kiran Kotak (Querist)

02 March 2010 Service Tax on purchase of under construction house property is applicable from which date? If it is from the date of notification then what about the part amount paid to the builder before the date of notification?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 March 2010 Your query related to Construction of Houseproperty or Renting of House property?

Kiran Kotak

Kiran Kotak (Querist)

03 March 2010 Construction of House Property

Kiran Kotak

Kiran Kotak (Querist)

05 March 2010 Service Tax on purchase of under construction house property is applicable from which date? If it is from the date of notification then what about the part amount paid to the builder before the date of notification?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

24 July 2025 Regarding **service tax on purchase of under-construction house property**, here’s a clear explanation:

### Applicability of Service Tax on Construction of House Property

* Service tax on construction services related to **immovable property** (like under-construction houses/flats) became applicable **from 01 July 2010**, based on the introduction of “Construction of Complex Services” under the Finance Act, 2010 and relevant notifications.

* **If you paid any part of the amount to the builder before 01 July 2010 (the effective date of the service tax), service tax is not applicable on that portion.** Service tax liability arises only on amounts paid or agreed to be paid **on or after** the effective date.

### Summary:

* For under-construction house property, **service tax applies from 1st July 2010 onwards**.
* Amounts paid **before this date are not subject to service tax**.
* Builders should charge service tax only on the portion of payment received after the notification date.

If you need, I can also share the specific notifications and circular references for your records. Would you like that?

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