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Service tax on purchase of flat & duplex

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Suman Kumar Agrawal

Chartered Accountants

226 Points Joined September 2008

My Client Purchases one Duplex from Builder after making one time payment.Now Builder inform him for service tax.Please suggest notification on this matter that no service tax payment on one time payment.

He also Purchases one Flat on Instalment .is he liable for service tax & on which amount?

Replies (1)

Vikas

1135 Points Joined January 2010

Dear Suman,

You may note the following –

Service Tax cannot be levied in case where the entire consideration is received after issuance of completion certificate from a competent authority. (Refer Section 66E(2) and the Supreme Court’s landmark judgement in case of MCHI.)
Yes. As in this case, the entire amount is not received after issuance of completion certificate.