Service tax on completed consturction

[Amol Raut]

I am seeking your valuable advice to clarify my doubt regarding the service tax in construction.
I was talking to different people and there is an difference of opinion.

Below is my case:

We are going in for an agreement with builder for ready to move flat in a building in western suburb of mumbai.
1) The said property is already constructed and people are staying from last 1.5 years.
The application for OC was already put up in Sept 2013 and still awaiting for OC certificate.
2) Builder is demanding service tax & vat.

3) I have come across one notification from Service tax Notifcation M.F.(D.R.) order no 1/2010) called as 'Service Tax (removal of difficulty) and as per that
besides government authorities others competent authorities like Architech/CA / legal surveyor can issue he completion certificate.

4) We have the competition certificate from Architect/ legal surveyor.

With the ref. of above notification & completion certificate by architect do we have to still pay the service tax to builder or no?

Looking for your positive response.

Regards,

Amol Raut

AI Summary

Service Tax on Flat Purchase Valid Without Official Occupancy Certificate, Section 66 E (b) of Finance Act, 1994. A forum participant sought advice on whether service tax is applicable for a completed flat purchase in Mumbai, where the building lacks an official occupancy certificate (OC) but has a completion certificate from an architect. The respondent explained that under Section 66 E (b) of the Finance Act, 1994, service tax is not applicable if the entire payment is made after receiving a completion certificate from a competent authority. However, since the OC is still pending, the builder's demand for service tax is valid unless local laws allow certificates from architects or surveyors as substitutes.