Service tax on property sale by builder

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On property sale by builder, is there any service tax on the builder? If so, brief summary please.

 

Replies (3)

I dont think so only Capital Gains arises under INCOME TAX Act. Service Tax is applicable when there is any service is provided by service provider to service receiver. However if such sale of property is made via broker/propery dealer than service tax gets attracted. 

If whole consideration is recieved after the receipt of completion certificate then there is no service tax liability and it is a pure sale trasnsaction.

Originally posted by : Nirav Worah

If whole consideration is recieved after the receipt of completion certificate then there is no service tax liability and it is a pure sale trasnsaction.


Thanks Nirav, for your response.  Rightly mentioned by you.  I think the operative phrase is "under construction property", which attracts ser-tax.

Wish you the best for your exams.


CCI Pro

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