Constructionn services

I accede you to provide us guidance on below point in relation to service tax.

Fact of Case:-

An Builder has found the prospective buyers for flats during the construction period, and, has received certain amount as an Installment payment of Rs 5 Lacs. Total Consideration of flat is 25 Lacs. Due to some unfavorable circumstances .The builder would not be able to obtain the completion certificate from the appropriate authority.

Query:-

What will be the value of Taxable Service for the purpose of service tax? Suppose in case the builder will receive the completion certificate then what will be the value of Taxable Service? 

 

 

Replies (2)

If you purchase the property after the completion certificate has been given, service tax wont be levied

 

however, if you purchase the property before the completion certificate has been awarded, Service Tax on Under Construction Property @ 3.09% would be levied

Thanx Neha, Can you please also tell me that on what amount service tax would be charge?

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