Service tax on under construction property

If any payment is made on incomplete construction property than Service tax is required to be paid, but is construction is complete than ST not required.

Service tax on residential complex is in force even prior to 01-07-2010. But if the transfer was effected by means of sale agreement, ST could not be levied as it amounts to sale of immovable property. From 01-07-2010 atrnsfer by sale is also liable to service tax if developer receives money prior to completion cetificate.

There is absolute confusion in the minds of the tax authorities and when it comes to the tribuanl the actual transaction wouldbe examined. Recently well settled issues such as WC not liable prior to 2007 have been departed from. 

The clarification by the revenue shouldbe sought in writing.

Many builders wishing to play safe collect the monies but may or may not pay the same to the dept. This in itslef is an offense.

In addtion, where the property was complete- since you mention that the same was registered then the levy of ST on the same does not exist.