Service tax & VAT on Under Counstructed Flat

[Saurabh Singh]

Dear All

 

I have Following queries relating to Service tax & VAT on Builders & Devlopers, Kindly help to solve the same

1. Can O.C.(Occupation Certificate) and CC (Complition Certificate) are same as if some one get OC still he require to get CC

2. Why VAT is Not applicable once Builders obtain CC From Prescribed Authority

 

[YAGAY andSUN]

Well, Occupation Certificate is required to be obtained by the occupier of the flat/house as the case may be from the jurisdiction Municipal corporation.  Where Complition Certificate is required to be obtained by the Builder from the Jurisdictional Municipal Corporation.

In some States both are used as synomins.

Now in Maharastra, VAT is also applicable on the dwelling flats due to change in MVAT Act recently.

AI Summary

Occupation versus completion certificate distinction affects VAT applicability on residential flats following statutory change. The distinction between Occupation Certificate (obtained by the occupier) and Completion Certificate (obtained by the builder) is material for indirect-tax treatment: recent statutory change in the cited jurisdiction brought dwelling flats within the scope of Value Added Tax, so VAT may apply to constructed flats once prescribed municipal certification is obtained while Service Tax considerations remain relevant.