I am purchasing a flat for 35L. Can I pay additional 15L to owner towards interiors and furniture in the flat? Will this transaction of 15L attract service tax for the owner? I do not want to include this 15L in the flat sale deed registeration to save on stamp duty as 35L itself is way above the property sale guidance value.
Please guide.
Interior work also attracts service tax .
Hi,
Where the possession & control gets transferred to the buyer, VAT is applicable and not Service tax
Hi.
I think this link will make your doubt clear.
https://www.raagvamdatt.com/Budget-2010-2011-service-tax-on-property-house-apartments-flats/266/
As far as VAT is concerned - VAT is sale tax on "works contract" which is agreement for sale between buyer and builder, in which case, buyerr agrees to book a flat where project is under construction. As per this VAT is charged on the flat which is booked while it is under construction via "agreement for sale."
If the following terms apply im your case then VAT is applacable.
It will be better if you dont publicaly mention to save stamp duty and all..
Regards
Mugdha
Sale of immovable property does not attract VAT. But the same may attract service tax in the hands of the developer/builder if any amount is received from the buyer before completion of the construction.
Unnikrishnan is right. If the interiors are after the completion of the apartment then there may not be any liability since there is no taxable cathory covering the same.
If before then it maybe coming under works contract and liable for ST.
Can we claim the service tax paid to builder for puchase of house as a deduction under section 80C.
CAclubindia
