On sale of residential flats there is a abatment of 75%. That means service tax is chargeable on 25% of value of flats which are under construction.
Please clarify whether flats which are ready possesion are liable to service tax or not. If no then please explain.
Also provide the extract of related act, notification or circulars.
If the full payment is made after getting teh completion certificte by the builder, then no ST liability is to be borne by the buyer. However if the advances are being made for an under construction properties then ST is levied on 25% of teh value of the taxable services provided.
Service tax is only applicable in a underconstruction property. if u have purchased/sale a ready property than the S-tax should not be applicable.In regard of VAT,yes it will be payable.
For sale of ready flat even VAT would nto be applicable. ONLY stamp duty wouldbe leviable.
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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