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No Service Tax On Purchase Of Under Construction Flats: Delhi HC

No service tax on under-construction flats in Noida orders Delhi HC

Published
India
1 min read
Laborers work at a construction site in Noida. ( Photo: AP)
  • No service tax can be levied in respect of the agreements entered into between buyers and builders for flats in an under-construction building in a housing project, the Delhi High Court ruled on Thursday.

  • There’s one exception though – Service tax could be levied on amount charged by the builders for preferential location of the flat, saying it was based on the preferences of customers and amounted to value addition.

  • The order was made in response to a petition against the levy of service tax on services in relation to construction of the complex as defined under the Finance Act 1994 as well as the levy of service tax on preferential location charges.

( With PTI inputs.)

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