Service Tax on Builders

2 comments Sunday, June 16, 2013

The revenue and the builders have always been at dispute when comes to leviability of service tax on the consideration received in advance by the builders/developers from the prospective buyers of immovable property to be constructed.

After the negative list regime the construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly has been declared to be a service liable to service tax. However, if the entire consideration from the prospective buyer  is received after issuance of completion certificate by competent authority then it is outside the purview of declared service.

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