From when is Service Tax on Residential Flat applicable

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  1. pradeep jain

    pradeep jain New Member

    From which date service tax is applicable on purchase &registration of residential flat.
  2. Rahul

    Rahul Active Member

    It is applicable from 2012
  3. pradeep jain

    pradeep jain New Member

  4. Rahul

    Rahul Active Member

    A notification of negative list of services was issued on 20th June 2012, applicable from 1st July 2012 with which it was clarified that service tax will be applicable on under construction property

    However exemption from Service Tax on Under Construction Property is available in circumstances pertaining to services provided in the following cases:

    1. Construction of a Single Residential Unit*
    2. Construction of Low Cost Houses upto a carpet area of 60 sq. metres per house in a housing project approved by competent authority empowered under the “Scheme of Affordable Housing in Partnership” framed by the Ministry of Housing and Urban Poverty Alleviation by the Govt. of India
    *Please Note: Single Residential Unit has been defined as a self contained residential unit designed for use of a single family. If the house/complex has multiple floors/units and the title of each of the units/floors is capable of being transferred to another person by Mutation in land/municipal records, all the floors/units would be considered as separate single residential units and Service Tax on Construction would be levied on the same

    For more info. refer to this article

    P.S. Service Tax is not applicable on fully constructed houses
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