Service Tax on real estate property

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

23 June 2011 Please provide the information about service tax on residetial property(flats) from when & how it will implenented?

If the occupation certificate getting from authority whether service tax applicable on ready flat or not?

CS Bijoy

CS Bijoy (Expert)
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24 June 2011 The Central Board of Excise and Customs (CBEC) has issued a Circular (No. 108/02-ST dated January 29, 2009) on the matter of service tax and the Director General of Service Taxes issued a Circular in February 2006 holding simply that construction and sale of residential property in all situations were taxable as works contracts and since such contracs, inter alia, comprised of provision of services, service taxes would apply under the heading of residential complex construction service.
This Circular essentially meant that in all situations where the developer or builder engaged in the above activities, regardless of when the sale of immovable property took place, service tax would inevitably apply.