Ministry of Finance vide its press release dated 26-10-2015 clarified that Service Tax is not applicable on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation (BMC).
It may be noted that it is specifically provided vide section 66E(b) of Finance Act 1994 that in case construction of a complex, building, civil structure or a part thereof where the entire consideration is received after issuance of completion-certificate by the competent authority the same does not chargeble to service tax.
Press Information Bureau, Ministry of Finance, 26-October-2015
