service tax
Chitra Srikanth
(Querist) 24 July 2013
This query is : Resolved
This is a practical case. The apartment was purchased in apr-may 2010 and was ready to move in with OC already in place since feb 2010. The builder collected service tax in june-july 2010. He now contends that the amendment regarding Oc as a criteria for excluding apartment from service tax is applicable only from july 2010. Need clarity on the following:
1 Is service tax applicable in this case?
2 since when is OC considered to be a critera for completion of apartments for the purpose of exemption from service tax?
Vineet
(Expert) 10 December 2013
Service tax was made applicable in respect of under construction flats w.e.f. 1-7-2010 only for the payments made after that date.
In your case, as the OC was already in place before that date, service tax was not applicable at all. There is no amendement regarding OC. In fact service tax was made applicable from 1-7-2010 with a rider that where the sold property has already got completion certificate from local authority or an Architect, no ST is leviable.
