Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: cpt :: VAT RATES :: empanelment :: list of goods taxed at 4% :: due date for vat payment :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TDS :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India
 
 
Service Tax »
 Do not raise service tax, says Chamber
 Excise, service taxpayers to migrate to GST portal by Jan 31
 Centre, state governments work on formula for 'GST on high seas'
 What is service tax?
 Tax to bring transparency, benefit companies operating in state, says Gujarat CM Vijay Rupani
 PAN a must for excise, service taxpayers for GST registration
  Service Tax for Internet Based Services in India from December 2016
 Way ahead for GST with certain provisions
 Goods And Services Tax (GST) Rollout Unlikely Before June-July
 GST: States demand tax on high sea sales, higher compensation
 What is the Difference Between Service Tax and Service Charge?

Easier for home buyers to get service tax exemption
June, 24th 2010

Home buyers and property developers can now enjoy exemption from service tax without much ado. A notification issued on Tuesday by the Central Board of Excise and Customs said that apart from the government agency (in this case, the local civic body), architects registered with the Council of Architecture, too, can issue a building completion certificate (BCC).

So can chartered engineers accredited to the Institution of Engineers and/or any surveyor licensed with the local body of the city or town or village where the property is located.

To get exemption from service tax, a home buyer must have a BCC from the local authority. The notification followed information that local authorities in some states do not issue BCCs. Others, like Maharashtra, take months to issue one. In Mumbai, almost 90% of the buildings do not have a completion certificate.

Mumbai developers have instead been issuing occupation certificates (OCs) to buyers as proof of completion of buildings. Developers find it easy to procure an OC rather than spending a huge amount to get a BCC from the authorities. An OC is issued when developers receive civic permission for water connections and sewage facilities.

Though a significant move, the notification has been interpreted differently by developers. Some said the flexibility could be abused. Others argued that outsourcing the job to independent accredited bodies would see lesser corruption.

Nayan Shah, managing director of Mayfair Housing, said that the appointment of outside agencies will save developers time to get a BCC, and spare home buyers from shelling out extra money for service tax.

But Deepak Goradia, managing director of Dosti Group, said that outside agencies will merely certify that the building has been built and flats are ready for sale. The local civic authority will still be the final authority to issue the BCC, he said. Developers, in principle, are opposed to the levying of service tax in ready or under-construction buildings. It burdens buyers with unnecessary expenses.

The Maharashtra Chamber of Housing Industry has decided to challenge this levy in the Bombay high court.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Multi-level Marketing MLM India Affiliate Marketing Affiliate Marketing Software MLM Software MLM Solutions Multi level marketing solutions MLM Servi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions