taxability on flats sales by builders after completion

[Ravikumar muthusamy]

Hi Experts pls highlight on service tax liability on sale of flats after completion by the builder

[Rajesh Nathoo]

Dear Muthuswamy ,

If  a builder is selling the flats  after obtaining completion certificate , it would not be liable fo SeviceTax .

[Ravikumar muthusamy]

thanks and pls advise this completion certificate is issued by any certified surveyor or any govt dept

also pls advise if regn is done on uds portion only

[JAYARAMAN M]

builder to avoid service tax  has to complete all flats, get the completion certificate as per his plan submitted. to the passing/developing authority

after completion no service element in the absence any contract,  and only the immovable property  is sold which cannot service tax.

Further it also will not attract any vat  as immovable property is outside the purview of state sales act.  

[Ravikumar muthusamy]

Thanks a lot sir

AI Summary

Service tax on post-completion flat sales: no service liability where sale conveys immovable property without ongoing services. Service tax is not leviable on sale of flats after the builder obtains the completion certificate and no contractual service continues; such post-completion transfers are treated as sales of immovable property and fall outside state sales tax/VAT, provided there is no separate service element or ongoing contractual obligation.