Service tax and vat

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SATISH

Service

23 Points Posted on 13 July 2016

buying flat from Land Owners share in Mumbai
1) Architect development completion certificate in Oct 2015
2) 20% Part payment made by 14th May 2016 but no agreement was signed.
3) OC received on 17th May 2016
4) Agreement to Sell dated 3 June 2016 registered on 4th June 2016.

Service tax is on basis on when payment is made or date when contract is signed.

Though I have made part payment before OC, but since no agreement was singed is service tax and VAT still applicable.

Is VAT applicable on property brought from land owners share.

Waiting for ur valuable inputs.

Thanks

Replies (3)

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 13 July 2016

Not applicable

SATISH

Service

23 Points Posted on 13 July 2016

Thankyou sir for replying,

Just to confirm that both service tax and VAT are not applicable.

Also would it be possible to include why its not applicable since my builder is asking to pay it or else he will not give possession.

Thanks,

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121521 Points Posted on 13 July 2016

Land owner has already paid it when the development agreement was sighned with builder.

He wishes to compensate, but your agreement with the owner has been executed after Occupation Certificate. The advance payment given by you was just token. Any payment after execution of agreement or allotment is considered for applicability of these taxes. Secondly, Architect has already issued Certificate in Oct. 2015