Service Tax on Flat purchased in 2003 but Conveyance Deed registered now.

POSTED BY Arun Tainwala ON April 21, 2013 11:31 am COMMENTS (3)

Dear Sir,

I had purchased a Flat from a Developer (Builder) in Jan 2003 by Agreement of sale for Rs. 20 Lakhs. The possesion of the Flat was given in July 2003. But the Conveyance Deed could not be completed as the original land owner died without a will. All the legal heirs have agreed to complete the Conveyance now. 

Please advice is Service Tax applicable even though all payments were completed before July 2003.


Arun Tainwala

3 replies on this article “Service Tax on Flat purchased in 2003 but Conveyance Deed registered now.”

  1. Dear Sir,

    As the transaction was executed way back in 2003 there would be no service tax applicability. The prime reason being service tax not being applicable on real estate transactions at that point of time.

    The transfer of deed would not affect the service tax liability.

    Hope this resolves your query.


    Team Finhealth

  2. Arun Tainwala says:

    Dear Ashal,

    Thank you for your reply. This will be very helpful.



  3. Dear Arun, in your given case, Service tax does not applied as all the transactions were made in 2003 , well before the implementation of Service Tax on property transactiosns. In case your builder is asking you any amount, towards service tax, he is making just some extra money from you.



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