Service Tax on subsequent sale of Under construction property

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  1. JayShah

    JayShah New Member

    Service Tax is levied on sale of under Construction property by the builder/developer for giving construction services as per the abatement schemes.
    However, what are the implications of Service Tax in cases where the Purchaser of the under construction property sells the property before the occupation certificate if received?

    In my opinion, selling of property is not a service, hence service tax should not be levied even though the sale is of an under construction property.
    Can anyone please provide clarification on the matter..
     
  2. sai tejesh(ca.final)

    sai tejesh(ca.final) Active Member

    Yes your interpretation is correct.
    There is no need to collect any service tax from the buyer.
    just you are again transferring the under constructed property to some other person without the provision of any service on such property.
     
    Last edited: May 14, 2015
  3. Manoj Mehra

    Manoj Mehra Active Member

    Yes, you dont need to collect Service Tax separately from the Buyer.
     
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