Q:
When i purchased the flat in Guwahati in October 2015, the building was ready to move. the builder asked for ST and VAT money and i paid. But builder has not given me any challan yet.
Also on similar note, I asked yesterday for the project completion certificate (as i know that after project completion certificate is issued, we dont need to pay ST) , he said they have applied for Completion certificate. How can they apply for it now one year residents started moving in?
Did they builder play a foul game? What is the possibility? What should i do?
Hi,
Service tax is paid at the time of sale of property, and the amount paid by the buyer to the builder is for construction service provided by the builder. But as you have purchased your flat when it was ready-to-move, so no service provided by the developer in your case. Thus, you don't need to pay service tax for your flat.
And secondly, yet, your builder didn't get Completion and Occupancy Certificate. Without completion and Occupancy certificate you can't occupy your flat as it is considered as illegal.
How can i check if they have paid the service tax or not. Because i have already paid the amount to them. Can i check with the excise department?
Also can i check with the municpal if they have acquired Completion certificate or not. From what i learned here, completion certificate is before applying for electricity connection and water connection. It is possible that they already have the certificate but not giving me because i will come to know that i bought a flat where no service tax was needed. All in all, their objective is to pocket the money
17th June 2016
Yes, i agree with Mritunjoy. Developers should not levy service tax on sale of flats and apartments once occupancy certificate is received but completion certificate is not.
What classifies as a constructed property? There has to be some certificate which will tell that the property is completed? In this case, isnt completion certificate that document?
17th June 2016
Hi folks!!
VAT and Service Tax are not applicable for “Constructed Property”. It is only applicable for under construction flat. Secondly, VAT may vary from state to state as it is state subject but service tax is uniform across country i.e. 15% as it is fixed by Govt of India from !st June 2016.
Hi Rishi,
What classifies as a constructed property? There has to be some certificate which will tell that the property is completed? In this case, isnt completion certificate that document?
17th June 2016
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