Gst (service tax) applicable on flat pur from land owner

This query is : Resolved

Talada Venkat Rao (Querist)
Follow

26 November 2018 I have purchased a Flat form land owner after completion certificate receive from Municipality. I have paid ₹ 2.50 lakhs to seller (Flat owner) as Service Tax by crossed cheque and received a Receipt also.
Now, how to recover the Service Tax which i have paid. What section will apply to file a suit at court.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

26 November 2018 Service tax not applicable on sale of completion certificate obtained flats.

Talada Venkat Rao

Talada Venkat Rao (Querist)
Follow

03 August 2019 Sir,
As you said "Service tax not applicable on sale of completion certificate obtained flats" but need some proof to submit at Honorable Court. Please send if any notification, G. O., or section in Service Tax act.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 August 2019 For long there was a debate around when a developer should charge service tax to a home buyer while selling the property—when the property is being constructed, or even after it is finished and occupancy certificates received. Resolving the issue, the Ministry of Finance issued a circular on 26 October, stating that developers should not levy service tax on sale of flats and apartments once occupancy certificate is received but completion certificate is not. In its statement, the ministry stated, “...that sale of flats/dwellings, etc., where the entire consideration is received after issue of occupancy certificate by Brihanmumbai Municipal Corporation (BMC), leading to a mere transfer of title in immovable property, falls outside the definition of “Service" provided in Section 65B (44) of the Finance Act, 1994, and is therefore, not taxable." In many projects, the developer may get the occupation certificate phase-wise, and the completion certificate once the whole project is completed.

Talada Venkat Rao

Talada Venkat Rao (Querist)
Follow

04 August 2019 Thank you CA R. Seetharaman sir

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 August 2019 Welcome.......................................

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now