Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding


  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

Service Tax to Builder

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Hi, We are paying some amount to a Builder towards completion of a part activity. Flat is not yet handed over to us, which will take a long time for them for complete finishing and handing over to us. The builder is raising a Tax Invoice and claiming Service Tax. Do we need to pay service tax, since flat is under completion and not handed over. If No, pls provide any notification / circular or .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... corresponding rule. Thanks Saket - Reply By Ganeshan Kalyani - The Reply = Service tax is applicable on under construction property. - Reply By Ganeshan Kalyani - The Reply = In the case of 'Suresh Kumar Bansal Vs Union of India Ors, Delhi High Court 2016 (6) TMI 192 - DELHI HIGH COURT has ruled that service Tax is not applicable on Purchase of flat. But then the same shall not .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... apply for Maharashtra. - Reply By saket s - The Reply = Sir, Thank you. But what if the flat is in Delhi NCR. - Reply By Ganeshan Kalyani - The Reply = In that case you may seek the benefit of the above referred case law and ask your builder not to levy service tax. - Reply By Srivatsan Krishnamachari - The Reply = If you are paying advance before completion certificate from Local Muncipa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... l/competent authorities, you need to pay Service tax otherwise not required. Thanks Srinivas - Reply By Ganeshan Kalyani - The Reply = Purchasing flat after completion certificate would amount to purchase. Hence service tax shall not be applicable in that case. VAT also will not apply because flat is not movable, which is one of condition for applicability of vat. - Reply By Mahir S - The Re .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ply = If you outrightly purchasing under construction flat, then there is no service tax thereon. However, your case appears to be different as much as that the building is under construction and that you shall be getting possession in future. The service tax is required to be paid for such building construction, so if service tax is charged and collected for the part amount paid towards the co .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... st of construction, there is nothing wrong. Even otherwise , the same would have to be paid later on for a whole lumpsum amount. - Reply By saket s - The Reply = Thanks all. - Service Tax to Builder - Query Started By: - saket s Dated:- 6-10-2016 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates