• Service tax on purchase the shop in commercial complex

Dear sir,
Please advice me 
is Service tax applicable on purchase the complete ready to move shop in commercial complex ?
I have purchased the shop (Six Lakh) from L V K Developer in Pilani Rajasthan on 24 August 2014. Now he is demanding the Service tax (3.65%). While in agreement nothing is mentioned regarding service taxes,
 Please suggest
Asked 6 years ago in Service Tax

Hi,

You are not liable to pay service tax.

Service tax is not leviable on ready to move property.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

Hi

If the property was fully constructed and completion certificate was received by the builder, no service tax was applicable.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

Hi,

Hope you are doing well !

As per provision, you are not liable to pay service tax .

Service Tax wont be levied on ready to move property.

It is only levied on under construction property.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Hi,

Service tax will not have to be paid on a ready to move property. It is applicable when the property is under construction. Hope that clarifies.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

Hi,

The shop holder's are not liable to pay service tax.

Although it is the responsibility of the builder to deposit the VAT and service tax with the government, builders often recover the cost from buyers. It ultimately depends on what the agreement between builder and the buyer provides. If you wish to avoid paying VAT and service tax, please ensure that the same is mentioned in your agreement with the builder.

Thanks & Regards,

Payal Chhajed

Payal Chhajed
CA, Mumbai
5188 Answers
289 Consultations

5.0 on 5.0

Dear Sir,

Service tax is not applicable on ready to move commercial complex. Please ask the developer to proove this.

I also provide services for ITR filing, GST filing and Audit at nominal charges. My email id is . You can text me to avail any of the above services.

Thanks

Vivek Kumar Arora
CA, Delhi
4845 Answers
1038 Consultations

5.0 on 5.0

The shop holder's are not liable to pay service tax if nothing is mentioned in the agreement.

Regards,

Nikhil.

Nikhil Khanna
CA, Mumbai
1429 Answers
19 Consultations

4.8 on 5.0

No, every shop holder is not liable to pay service tax if they bought ready shops.

Abhishek Dugar
CA, Mumbai
3576 Answers
183 Consultations

4.8 on 5.0

If you had entered into an agreement with the builder at the time when the complex was under construction, you will have to pay service tax.

However, if the agreement as well as purchase happened after the construction of complex was completed and the builder had received the completion certificate, no service tax was applicable.

So, for ready to move in - no ST and for under construction- ST was applicable.

Lakshita Bhandari
CA, Mumbai
5687 Answers
910 Consultations

5.0 on 5.0

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