Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law.... :bab (38)::bab (38):
otherwise later on after buying the property ... builder will force me to pay the ser tax
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  • Originally Posted by Rajved
    Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law.... :bab (38)::bab (38):
    otherwise later on after buying the property ... builder will force me to pay the ser tax


    Builder is right .Enjoy ...
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  • Originally Posted by Rajved
    Builder told me that since he has received the completion certificate no need to pay service tax... does this argument holds good in law.... :bab (38)::bab (38):
    otherwise later on after buying the property ... builder will force me to pay the ser tax


    You mean "Occupancy certificate" OC?
    No service tax if OC has been obtained for the building.
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  • +1.

    Service tax can not be charged if builder got OC. Even if you buy RTM from builder, no ST applicable
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  • Y service tax is not applicable if v buy RTM frm builder?? Do dis mean that no1 will pay service tax on RTM appartments??
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  • vat and registration of new flat (finished completion)

    Hi all,

    for ready to occupy properties with completion certificate, there is no liability of service tax.

    can the experts guide on VAT and registration amount for the flat

    rgds,
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  • VAT on Flat purchases in Pune - Explained
    On August 6, the state sales tax department issued a circular to developers saying value-added tax (VAT) at the rate of 5% of the value with retrospective effect would be levied on flats, shops and bungalows sold by them between June 20, 2006, and March 31, 2010.
    1. What is the effective date from which the VAT will be applicable for sale of under constructed flat? -
    Ans: The VAT is payable from the date of amendment i.e. 20 June, 2006.
    2. On what type of contracts the VAT is payable?
    Ans: VAT is payable in respect of sale of under construction flat.
    3. Whether VAT is payable on the sale of completed flat?
    Ans: VAT is not payable if a completed flat is sold by the developer
    4. So, who has to pay VAT? The flat buyer or developer?
    Ans:The liability to pay VAT is on the developer. But, developers are creating a perception that the buyer has to pay the tax by saying it will add burden.
    5.Why are there different slots of taxes for those who have bought flats between June 20, 2006, and June 20, 2010, and for those after June 2010?
    Ans: It is the government’s decision. Moreover, builders themselves had agreed to pay 1% VAT after April 2010. The decision to charge 5% VAT was taken earlier. In fact, it will reduce to 2%-2.5% as per the norms. That benefit the developer has pass on to buyers by choosing a lower slot of tax.
    6. What is the effective date from which VAT will be applicable for the sale of an under-construction flat?
    Ans: VAT is payable from June 20, 2006
    7.On what type of construction is VAT payable?
    Ans: It is payable in respect of sale of under-construction flats. It is not applicable to ready possession. People who have bought a flat in re-sale don’t have to pay VAT.
    8.Who has to pay VAT, if a developer has not told the buyer about it during the purchase post-2006?
    Ans: The developer has to pay the VAT. The developer should make a clear note of VAT in the purchase agreement, if the clause is missing, the developer will be liable to pay it.
    9.If the agreement to sell a flat was executed before June 20, 2006, the building was under-construction and possession was given after June 20, 2006, will VAT will applicable?
    Ans: Yes, VAT will be applicable. It will be levied on value received or receivable on June 20, 2006.
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  • No service tax/VAT ad by builder

    This should clarify that flats can be sold without ST/VAT if it is ready possession.
    (This ad is only for example and I make no personal recommendations about this project.)
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  • does this mean another advantage of RTM property compare to under construction? as service tax is quite big amount (5%).
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  • A Property is under construction and part payment of total cost of flat is already paid. stamp duty & registration was done on 31 march 2010. property is still under construction after 31 march 2010 till date.
    in this case is VAT liable to be paid only for payments made before 31 march 2010 OR VAT will be charged on full sale amount ?
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  • How much % Interest on Service Tax & VAT to be Paid to the Owner & by Whom?

    Recently, I got to know that Service Tax and VAT was not to be paid for ready possession flat in Maharashtra. I bought the flat in July-2012.

    Upon which I had contacted to the builder and he happily gave me back the amount i.e. 3.09% Service Tax and 1% VAT in the month of August 2015.

    Now the real question is that, the builder had the amount for 3 years so who needs to pay me the interest on it as well as how much % interest does the builder/govt. need to pay.

    Can you throw some light on the same.
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  • I think zero percent interest. You paid it yourself. Government didn't demand it from you. I had once paid twice the property tax by mistake. For one year, the money lied dormant with them, and it was adjusted next year without any interest.
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  • @realacres - Senior members, please give your inputs.
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  • Service Tax and VAT: Not Applicable on Ready Possession Flats in Pune

    There was a ruling by Bombay High court that builders can't take service tax & VAT on ready possession flats. Does anyone know the court ruling number or court case number so that we can have a look to the whole judgement as to understand it in depth.
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  • Originally Posted by immortal
    There was a ruling by Bombay High court that builders can't take service tax & VAT on ready possession flats. Does anyone know the court ruling number or court case number so that we can have a look to the whole judgement as to understand it in depth.


    No need for any ruling as same is part of basis provisions of law. Against sale of immovable property / RTM, there is no transfer of ownership of any goods (for VAT) or services (for service tax) from builder to flay-buyer.

    Further, recently, Delhi High court has ruled that 'service tax' is NOT payable even while buying an under-construction property.
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  • Originally Posted by amit007
    No need for any ruling as same is part of basis provisions of law. Against sale of immovable property / RTM, there is no transfer of ownership of any goods (for VAT) or services (for service tax) from builder to flay-buyer.

    Further, recently, Delhi High court has ruled that 'service tax' is NOT payable even while buying an under-construction property.


    Is Delhi High court judgement applicable in pune as well?
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