Hi All,
I would like to seek opinion regarding Service tax on property purchased recently.
It is redevelopment property started in 2013 and nearing completion (parking and lift installation is on-going). Occupation Certificate is expected in 3 months. I have purchased it from existing tenant (who was member of old building before redevelopment), and not from builder. Also, registration of the property would be done in coming week.
Having said that, I would like to know if I need to pay service tax on the property. As I understand, Service tax is levied on the service offered by the builder. Herein, I am purchasing the property from Existing tenant, who would have received service from builder.
Further, Building is almost completed, and property would be registered shortly, so there would be limited service that I would be receiving directly from the builder (around parking, lift etc).
So, I am not sure if I am liable to pay Service tax. And if so, how much that shall be? Please help.
CAclubindia
