Is service tax applicable to buyer, if he is purchasing ready to move flat from owners share?

Q: I am planning to purchase a flat from the land owner which he got it as his share from builder. The flat is ready to move and also the building got Occupation Certificate from the Gram Panchayat. He is saying that VAT is not applicable as this is owner's share but asking me to pay the sales tax of 3.25% on total value. As i was searching for this, i got to know that service tax and VAT are not applicable on ready to move flats. Request help on this

anand,

25th November 2015

Legal in Hyderabad

no service tax for ready to move properties

no vat for ready to move properties

jain shan residency manikonda hyderabad

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Replies (1)

If you are buying a ready to occupy flat; in case the builder has developed the project to 100% & obtained the occupancy certificate for the same before selling it to you, it is a product being sold. There is no service component involved in this and hence you don't have to pay any service charges. And if it is a product (and not a service) then should you be paying VAT (Value Added Tax) on it? Short answer is 'NO'. VAT is not applicable for immovable goods. So. in your case no Service Tax and VAT is applicable.