Service Tax on under construction flat - Indian Real Estate Forum

komalmeena · 05-12-11

Hello All,
I booked my Flat on 29.11.11 in Pimple Saudagar, Shiva Heights Phase II. Builder says he will do Agreement after 1st Jan when he gets his completion certificate from PMC/PCMC.
on 31st Dec he will declare his property as Ready possession. and he will apply and get the completion certificate from PMC/PCMC.
He is charging me 1.3 Lacs (2.5% of agreement value) as service tax.
As far as i know, there is no service tax applicable on ready possession property.
I have doubt that builder will collect service tax from me but he wont pay this to Govt. as per norms that's he wants to do Agreement after property completion certificate.
I have asked builder to give me benefit of this service tax also in this case.
I'll be paying rest of the 80% through loan by 15th Feb.

I want to know expertise and experience about this issue please.

malhr0 · 30-12-11

Hi, I have the same problem with Shiva heights. I have booked a flat there and builder is asking for service tax even though he would execute the agreement after Completion Certificate. Please suggest.

snp101 · 28-01-12

I booked my flat in thane in december 2010 and till date i have made 90% of the payments. Registration also completed in march 2011.
Now, the builder has sent me a claim for service tax with 18 % interest on all payments till date.There was no delay in any payment by me so far on all the sceduled payments.
Please advise.

05-12-11	#1
komalmeena New Member Join Date: Nov 2011 Posts: 3 Thanks: 0 Thanked 1 Time in 1 Post	Service Tax on under construction flat Hello All, I booked my Flat on 29.11.11 in Pimple Saudagar, Shiva Heights Phase II. Builder says he will do Agreement after 1st Jan when he gets his completion certificate from PMC/PCMC. on 31st Dec he will declare his property as Ready possession. and he will apply and get the completion certificate from PMC/PCMC. He is charging me 1.3 Lacs (2.5% of agreement value) as service tax. As far as i know, there is no service tax applicable on ready possession property. I have doubt that builder will collect service tax from me but he wont pay this to Govt. as per norms that's he wants to do Agreement after property completion certificate. I have asked builder to give me benefit of this service tax also in this case. I'll be paying rest of the 80% through loan by 15th Feb. I want to know expertise and experience about this issue please.

28-01-12	#3
snp101 New Member Join Date: Jan 2012 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	service tax and interest at 18% I booked my flat in thane in december 2010 and till date i have made 90% of the payments. Registration also completed in march 2011. Now, the builder has sent me a claim for service tax with 18 % interest on all payments till date.There was no delay in any payment by me so far on all the sceduled payments. Please advise.

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30-12-11	#2
malhr0 New Member Join Date: Dec 2011 Posts: 1 Thanks: 1 Thanked 0 Times in 0 Posts	Hi, I have the same problem with Shiva heights. I have booked a flat there and builder is asking for service tax even though he would execute the agreement after Completion Certificate. Please suggest.