20 November 2013
I WORK IN A REAL ESTATE COMPANY. HERE WE RECEIVED PARTLY OR FULLY FLAT AMOUNT FROM PARTY. IF I HAVE COMPLETION CERTIFICATE AND PARTY GIVE FLAT AMOUNT PARTLY AS A FIRST BOOKING AMOUNT HERE SERVICE TAX APPLICABLE OR NOT? MY 2ND QUESTION IS, SAY FLAT VALUE RS.50 LAKHS AND HE IS A NEW BOOKING PARTY, GIVE FULL FLAT AMOUNT AND WE HAVE A COMPLETION CERTIFICATE. IS SERVICE TAX APPLICABLE OR NOT? AND IF HE GIVES PARTLY AMOUNT? IT IS ALL ABOUT AFTER GETTING COMPLETION CERTIFICATE... THANKING YOU SIR.
20 November 2013
As per my view Case 1:where the booking amount is received earlier and the balance amount is received after the completion certificate the entire amount received shall be subjected to service tax.
Case2:Flat is ready with completion certficate.The entire consideration wheteher lumpsum or in installments for flat is received after completion certificate,then NO SERVICE TAX applicable as it is a pure sale of immovable property.The same is excluded from defination of Services.
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