Service tax on newly purchased flat
Amol Ashok Baviskar
(Querist) 08 September 2012
This query is : Resolved
I had purchased new flat in auarangabad (maharashtra) at beed by pass area.
Registry amount for flat is 1100000/-
Builder has charged me 3.10% service tax & 1% vat on total regirty value.
Note note that we don't make agreement of sale or any type of document the time of booking.Directly make a registry.
Pl. confirm service tax & vat is applicable ot not applicable.
If it is applicable,name on the receipt is bulider or owner.
Sailesh Kumar Shah
(Expert) 08 September 2012
It seems that you have purchased furnished flat.
If builder get, "Completion Certificate" then there is no chargeblity of service tax and vat.
Amol Ashok Baviskar
(Querist) 09 September 2012
NO there is confusion between understanding,
I have to clear you this is not a furnished flat & builder is not getting completion certificate.
I had purchsed flat on total 1850000/- but we show value of that flat at the time of registry is 1100000/-.We do not make agreement to sale at the time of booking.
We directly made registry on 31st may 2012.
My friend asking this query to one C.A. he replied "If you doesn't make agreement to sale, service tax & vat is not applicable"
bacuse you made only registry that means you purchased ready possesion flat not in under construction.
This is applicable only in under construction.
Pl. confirm is it applicable or not applicable
Amol Ashok Baviskar
(Querist) 10 September 2012
Dear Mr.Shah sir,
I am waiting for your reply for the above reply.
Amol Baviskar
Sailesh Kumar Shah
(Expert) 10 September 2012
Dear Mr.Amol
There is no applicability of service tax in case of direct sale deed of property.
So, builder has charged wrongly.
