Is it necessary to pay service tax or is there any way not to pay service tax to the builder?

Q: I have bought a flat but not signed the agreement as the occupation certificate has not been obtained from the govt.I have made 95% of the payment.Is it necessary to pay service tax?Is there any way of not paying the service tax to the builder?Maxwell Paes from Goa

maxwellpaes,

23rd November 2011

Property Tax in Goa

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Service tax is applicable for payment made on all under-construction property and as you had paid 95% of the payment you cannot escape from service tax. If you planned not to pay service tax, you should have invested on completed project. An apartment is under-construction till it gets its completion certificate.

Abhilasha , Apartment Resident

23rd November 2011

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Hi Maxwell, If the builder has not got the occupation certificate then you should not pay the service tax. Wait for the builder to clear all the approvals and get the OC.

Sunil Kulkarni, Pune

23rd November 2011

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