Service tax on completed consturction

[Asked by Guest]

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 construction: taxable unless entire consideration follows issuance of competent authority completion certificate.
Construction services are taxable unless the entire consideration is received only after issuance of a completion certificate by the competent authority. If local law prescribes a government or municipal authority to issue the certificate, certificates from architects, chartered engineers or licensed surveyors will not qualify; if no statutory authority is prescribed, certificates from those professionals may be relied upon to claim the exemption.