Case Law Details
Construction of a complex intended for sale by the builder before, during or after construction is deemed to be a service provided by the builder to the buyer;
No service tax is leviable if entire payment for the property is paid by the buyer after completion of the construction including certification by the local authorities;
Thus service tax has been levied on any commercial or industrial construction of residential complex prior to obtaining completion certificate by creating a deeming fiction.
Directions by the Bombay High Court
Maharashtra Chamber of Housing Industry (MCHI), an umbrella organisation of more than 500 developers, filed a writ petition before the Bombay High Court challenging the constitutional validity of construction of complex service as amended by the Finance Act, 2010;
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