Service Tax on Ready to move in Apartment

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  1. sallianz11

    sallianz11 New Member

    I recently purchased a ready to move in apartment in Andheri West from the builder. The apartment was being used as an office for the building.

    I would like to know the service tax to be paid on the apartment.

    Also, is there a new rule that levies service tax on under-construction property or even on /ready to move in properties.

    Thanks,
    Sandeep
     
  2. Karan Batra

    Karan Batra Well-Known Member

    Service Tax wont be levied on ready to move in apartment

    It is only levied on under construction apartments
     
  3. sallianz11

    sallianz11 New Member

    Thanks for the reply Karan.

    Just to clarify further, from this URL - http://www.magicbricks.com/buyers-guide/tax-implication.html - I see the below

    "What are the taxes you have to pay while purchasing property?
    If you are buying a new property, you have to pay Service Tax, VAT and Stamp Duty on the total amount of purchase. If you buy re-sale property, then you do not have to pay any of these taxes. "

    This flat was being used by the builder as the building office and I purchased it from the builder himself.

    So again the question arises, if the service tax is applicable in this case i.e on new (but not under construction) property.

    Thanks,
    Sandeep
     
  4. Karan Batra

    Karan Batra Well-Known Member

    The information given in the above mentioned link is incomplete.

    Service Tax on property is only applicable if the property purchased is an under construction property.

    No Service Tax is levied in case of fully completed property
     
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