Service tax on flat -housing construction

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I have booked flat and completed registration before 15 May2010 with one installment from HDFC to builder. This flat is still under construction stage and expected possession by decemebr 2012. My builder advised to pay service tax @ 2.5% on agreement value as per service tax amendment applicable effect from 1st July2010. So I want to know I have to pay tax on total agreement value or payment made after 1st july 2010 to builder.
Replies (6)

it should be on payment after july..as at that time service tax was payable on receipt basis so he would have paid service tax on payment already made

Hi All,

I am in a similar situation. I booked a flat before July/2010 in a new project. I have paid a few installments before July/2010 and several regular installments after July/2010. The builder is asking for service tax on installments paid after July/2010.

 

Please can you/anyone advise whether:
a) Service Tax is applicable on all payments since July/2010 
OR
b) Not applicable at all as I booked prior to July/2010.

 

The following article suggests it will not be applicable hence I am confused:

https://www.accommodationtimes.com/real-estate-news/book-under-construction-flat-before-july-2010-to-avoid-3-30-service-tax-on-agreement-value/

Thanks in advance for helping.

Please can someone respond to my query above?

Please can someone respond to my query above?

 

Please note that as the construction of the said building was not completed, thus you are liable to pay Service Tax, If in case the construction is complete and you purchase a ready flat, then in that case Service Tax is not applicable, please refer to the following Article & other article about VAT on the said site.

https://www.chsguru.com/2012/01/service-tax-application-on-flat-sale.html

 

 

Many thanks for responding, the article is very helpful.

Originally posted by : chsguru.com

 

Please note that as the construction of the said building was not completed, thus you are liable to pay Service Tax, If in case the construction is complete and you purchase a ready flat, then in that case Service Tax is not applicable, please refer to the following Article & other article about VAT on the said site.

https://www.chsguru.com/2012/01/service-tax-application-on-flat-sale.html

 

 


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