Can builder charge VAT & Service Tax after getting CC?

Mahesh Desai,

27th August 2015

Property Tax in Mumbai

service tax & vat on constructed property

service tax & vat on under construction property

under construction property

service tax 2015-16

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Replies (2)

In Technical terms CC means Commencement Certificate and not completion certificate. YES, builder HAS to charge Service tax and VAT for flats sold even before or after obtaining CC. once the building is complete, government issues OC which means Occupancy Certificate, and flats sold / registered after that are free of Service tax and VAT.

Ronak, Mumbai

Official account of - Sudama Group of Builders and Developers

6th February 2016

Comment

Right Ronak,
Service tax can not be charged if builder got OC. Even if you buy RTM from builder, no ST applicable.

Vinu S,

17th February 2016

No, he cann't charge VAT & Service after getting Completion Certificate. A property is termed under construction till the builder receives a completion certificate from the relevant authorities. If the entire amount for the property purchase is paid after the receipt of a completion certificate, there would be no service tax levied on the purchase of the property.