Visit these links to know about service tax on property:
1) Service tax from July 1:The Central Board of Excise and Customs, the apex indirect taxes body, has issued several notifications related to separate areas to enforce the provisions of the Finance Act 2010.
Sale of immovable property will be deemed to be taxable unless entire consideration is paid after the issuance of completion certificate by a competent authority. However, service tax will be levied only on 25% of the gross sale value of property. Low-cost housing under the Jawaharlal Nehru National Urban Renewal Mission and the Rajiv Awas Yojana have been exempted from service tax that will begin to be levied from July 1. :Read More
2) Service Tax on Construction Service wef 01.07.2010 - FAQ:The effect of the change is that the service tax will not apply only when a builder sales a ready flat or shop or industrial unit (gala) after Building completion certificate is obtained from local authority (like Municipal Corporation, Municipality, Gram Panchayat etc.) and entire consideration is obtained only after building completion certificate is obtained.
In all other cases, the builder will be liable to pay the service tax. It is well known that in most of the cases, builder constructs buildings mainly on raising funds from prospective buyers. Further, even after building is completed and ready for occupation, there is delay in obtaining building completion certificate from the authorities (Now the delay will be more and ‘cost’ of obtaining the certificate will rise further).
Thus, practically in all cases, the builder/developer will be liable to pay service tax, except in case of few flats or shops or commercial galas, which he usually keeps for sale at a later date at higher prices. Even in this case, the builder/developer will not be liable only if entire transaction (including receipt of money) takes place after obtaining ‘completion certificate’ from municipal or other competent authority. :Read More
3) If you plan to acquire property:• If you plan to buy a house or an apartment in a residential complex, you will be liable to pay service tax if you agree to buy the said property, or make a payment for it, before the certificate of completion is issued.
Also, now, the certificate of completion can be issued by any architect or chartered engineer or a licensed surveyor. :Read More
4) Summary of Service Tax Notification No. 24/2010 to 35/2010 dated June 22, 2010 | Tax Guru
5) FAQ on Service Tax on Construction of Residential & Commercial Premises |Tax Guru
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