All You Need To Know About Service Tax On Property In the real estate industry, service tax is payable to properties that are still being built. When buying a home, property owners have a lot of factors to take into account. First, it's never clear how much one is required to pay. There are two categories of properties: those that are finished and those that are still under construction. Any business that offers services must charge a service tax. Only properties that are still under development in the real estate industry are subject to service tax. It is levied for commercial complexes, public buildings, and any property put up for sale.
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When a buyer purchases a property, ownership passes to that individual, and ideally the seller takes over as the property's service provider by finishing the construction, which introduces a service tax component to the equation. When building complexes, civil structures, or the individual elements are put up for sale, builders or real estate developers must charge service tax on the properties. A Competent Authority does, however, get paid before the completion certificate is issued. Many real estate developers and builders voiced their opposition to the imposition of service tax on under construction property to the courts when this law about service tax was initially imposed. For the same, the legal authorities had also produced a Stay Order. However, the courts ultimately ruled in the government's favour; as a result, service tax on construction property is now a requirement.