property service tax

In case of flat sales, the title transfer of immovable property with an issuance of an occupancy certificate will be exempted from any kind of service tax, on Monday the finance ministry stated.

It was long time issue in the real estate domain and to resolve this long standing issue which is directly related to the essentially of service tax on the time of sale of dwellings or flats after issuing the occupancy certificate and before issuing completion certificate. It is well known fact that these kinds of sales need consideration after the issue of occupancy certificate. According to official press release, “The definition of service under Section 65B (44) of the Finance Act, 1994, leading towards the issue of transfer of title in immovable property is not taxable”.

However; the clarification given by CBEC (Central Board of Excise and Customs) all the cases related to these areas are under the jurisdiction of BMC (Brihanmumbai Municipal Corporation) or MCGM (Municipal Corporation of Greater Mumbai).