Service tax on commercial property, Service Tax

[varsha mehta]

I have purchased an commercial property  for the period 2008-09 at Ahmadabad. Recently the seller asking me to pay service tax on above property purchased.  

Kindly let me know that the service tax is applicable on this or not?

 

Thanks in Advance....

Posts / Replies

[Shyam Sunder]

Hi,

No, you don’t need to pay service tax. Service tax provision doesn’t covered the transfer of title in immovable property.

Thanks,

Shyam

As per Section 65 B (44), A transfer of title in immovable property does not include in meaning of service.

[varsha mehta]

thanks for your reply...

but  i have one more  doubt  what is definition of 'service' under Section 65 B (44) for the period 2008-09 because I have purchased commercial property  for the period 2008-09.

 

[Shyam .]

Hi,

Section 65 B (44) does not exist in year 2008-09. The  term "Service" has been defined for the first time in finance act 2012. 

Thanks,

Shyam

[Pratik Bhansali]

Hi Varsha,

I agree to Mr Shyam. However can you please clarify the property which you purchased was a under construction property ? If Yes .. when was the construction completed ?

 

Pratik

 

[varsha mehta]

Sir,

I purchased a warehouse at Gandhidham  for the year 2008-09 and this was not a under construction property. I purchased fully constructed warehouse by sale Agreement entered into buyer & seller.

Thanks...

 

[varsha mehta]

 

Please note the word Ahmadabad instead of Gandhidham.