No service tax on flat title transfers in Mumbai

The finance ministry’s clarification makes a distinction between mere transfer of title and construction work, which is a taxable service

Written by FE Bureau

New Delhi

Updated: October 27, 2015 12:08 IST

The finance ministry has clarified that service tax is not applicable on sale of flats and dwellings after occupancy certificate has been issued but before completion certificate is given in areas under the Brihanmumbai Municipal Corporation (BMC). “It has been conveyed to the service

tax authorities in Mumbai on October 23 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,” the finance ministry stated.

The clarification makes a distinction between mere transfer of title and construction work, which is a taxable service.

This article was first uploaded on October twenty-seven, twenty fifteen, at forty-two minutes past twelve in the am.