A customer who has purchased a flat/commercial unit/industrial gala/shop from builder/developer is selling the same before Completion Certificate is obtained. Is he liable to pay service tax?
The words used in the Explanation are by the builder or a person authorised by the builder. A customer is not a person authorised by builder to enter into contract for construction. Hence, a customer cannot fall within that definition. Even otherwise, service tax is payable on value of taxable service which has already been paid by builder/developer. Even if the customer sales the flat or unit or shop at higher price, it does not mean that cost of construction has increased.
Related Questions
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