No service tax on mere transfer of title in property

Home Forums Service Tax No service tax on mere transfer of title in property

This topic contains 0 replies, has 1 voice, and was last updated by  TaxIndiaUpdates In 10 months ago.

  • Author
    Posts
  • #6909

    Ministry of Finance vide its (PIB) press release dated 26-10-2015 clarified that Service Tax is not applicable on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation (BMC).

    It may be noted that it is specifically provided vide section 66E(b) of Finance Act 1994 that in case construction of a complex, building, civil structure or a part thereof where the entire consideration is received after issuance of completion-certificate by the competent authority the same does not chargeble to service tax.


    Press Information Bureau
    Government of India
    Ministry of Finance
    26-October-2015 15:45 IST
    Mere transfer of title in immovable property is exempted from Service Tax

    In order to resolve a long standing issue relating to levy of Service Tax on sale of flats/dwellings etc. after issue of occupancy certificate but before issue of completion certificate in areas under the jurisdiction of Municipal Corporation of Greater Mumbai i.e. Brihanmumbai Municipal Corporation (BMC), it has been conveyed to the Service Tax Authorities in Mumbai on Friday, 23rd October, 2015 that sale of flats/dwellings etc., where the entire consideration is received after issue of occupancy certificate by BMC, leading to a mere transfer of title in immovable property, falls outside the definition of “Service” provided in Section 65B (44) of the Finance Act, 1994, and is therefore, not taxable.
    **********

    DSM/MA/AK

You must be logged in to reply to this topic.