CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
05 March 2013On sale of residential flats there is a abatment of 75%. That means service tax is chargeable on 25% of value of flats which are under construction.
Please clarify whether flats which are ready possesion are liable to service tax or not. If no then please explain.
Also provide the extract of related act, notification or circulars.
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 05 March 2013
If the full payment is made after getting teh completion certificte by the builder, then no ST liability is to be borne by the buyer. However if the advances are being made for an under construction properties then ST is levied on 25% of teh value of the taxable services provided.
POOJA
(ARTICLE ASSISTANT)
(169 Points)
Replied 05 March 2013
Service tax is only applicable in a underconstruction property. if u have purchased/sale a ready property than the S-tax should not be applicable.In regard of VAT,yes it will be payable.
Madhukar N Hiregange
(Chartered Accountant)
(39034 Points)
Replied 05 March 2013
For sale of ready flat even VAT would nto be applicable. ONLY stamp duty wouldbe leviable.
Landmark Judgments: Important Provisions of the EPF & ESI Act interpreted by the Honorable Supreme Court of India
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