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Service tax info for land owner flat

Aravind (Others) (32 Points)

21 August 2015

Hi Sir,

I have purchased ready possition (reday to occupy) flat in Hyderabad ( Maniknoda) Jun 2015 and registerd 26th Jun 2015 as semi finished . As i know there won't be any VAT and Service tax, but builder (Hallmark) demanding me to pay service tax. I brought this flat from landowner share and this building already got NOC (Building completion certificate).

Now Builder saying that, you have registed falt under semi finished not as full finished, So you need to pay service tax. They are threatening me to pay service tax or they will look into other way ( don't know what it means)

Please advise, do i have to pay serivce tax for landowner share flat.

Regards,

Aravind.M

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7 Replies

CMA Poornima Madhava (CMA) (13112 Points)
Replied 21 August 2015

No service tax on construction contract where consideration has been received fully after issuance of completion certificate by competent authority. If this condition is satisfied then no need to pay ST

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Aravind (Others) (32 Points)
Replied 25 August 2015

Hi Poornima,

Many thanks for the guidence.

I have another qurery, Builders saying that my flat regiested as semi finished with govt value, but they are saying i need to regiester total value menctioned in the sale deed (38 L). Actually I purchased flat for 34 lakhs to get bank loan we have given 38 lakhs in the sale deed.

1 Is there anyproblem if i register falt in semi finished ?

2. if possible please guide me meaning of semi and full finished flat ?

3. what action i need to take if builder demaning money(service tax)?

4. Builders not giving doucments( PArking authorization letter, Electricity merter transfer, Occupation certificate, Noc ( they alredy have this, but saying they don't have) until i give money?

Please advise.

Regards,

Aravind.M

CMA Poornima Madhava (CMA) (13112 Points)
Replied 25 August 2015

Do you mean to say that flat is still not completely constructed? Is it semi finished or semi furnished?
You say that you have already registered the flat, then now where is the question of registering again for 34 lacs?

Aravind (Others) (32 Points)
Replied 25 August 2015

Hi Poornima,

Apologies for the confusion. I have registered my flat on 26th Jun 2015 and it was ready to occupy state. Other flats are occupied before I brought the flat.

Regards,

ARavind .M

Aravind (Others) (32 Points)
Replied 31 August 2015

Hi,

Thank you for your help.

I had discussion with Builder and landowner and come to know that, as per the developer agreement between Builder and landowner once the landowner has the flat occupancy from builder he has to pay service tax ( Sale deed has already registered with their names), but he didn't paid the service tax that time.

Landowner asking me to pay service tax for this flat and initial agreement between landowner and myself, he was not told me this info.

Please advise, how to proceed further.

Regards,

Aravind .M

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Aravind (Others) (32 Points)
Replied 07 December 2015

Hi,

Please advise on my earlier post.

Regards,

Aravind .M

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 07 December 2015

This forum we can answer to extent of ST. As informed- no ST if flat is complete. If LL makes a mistake knowingly then it is his problem. It is important therefore to have agreement on factual basis.