- LATEST
- WEBSTORY
- TRENDING
MUMBAI
Easier for home buyers to get service tax exemption
To get exemption from service tax, a home buyer must have a building completion certificate from the local authority.
Updated : Jun 24, 2010, 01:14 AM IST
TRENDING NOW
)
AR Rahman, Saira Banu's daughter Raheema opens up on parents' divorce being linked to Mohini Dey: 'Always remember...'
)
Emotional Intelligence for Entrepreneurs: A Key to Business Success
)
Riddhima Kapoor Sahni reveals Rishi Kapoor's last two wishes: 'He wanted to see Ranbir Kapoor getting...'
)
Sana Khan, former Bigg Boss contestant, actress announces 2nd pregnancy with Anas Saiyad: 'Only Allah has power to..'
)
'Good to be back': After breaking up with Malaika Arora, Arjun Kapoor reunites with his 'partner-in-crime after ages'
)
'Your dance lightens up...': Little girl's dance on 'Tere Bina na Guzara E' steals hearts online, WATCH viral video
)
Is Mia Khalifa dating ex-Man City star Julian Alvarez? Former adult star says 'It certainly...'
)
Meet Imsha Rehman, Pakistani TikTok star who deactivated her accounts after video leak and Minahil Malik's MMS
)
This Pakistani Influencer's private video leaked online, days after Minahil Malik and Insha Rehman's clips
)
32-year-old superstar forcibly kissed 15-year-old co-star; left her traumatised, crying; later laughed about it saying..
)
Amid Aishwarya Rai-Abhishek Bachchan divorce rumours, Jaya Bachchan says 'not my daughter' in viral video
)
Telecom rules to change from January 1, Mukesh Ambani's Jio, Airtel, Vi, BSNL will be affected due to...
)
Mukesh Ambani's SUPERHIT plan for Jio users, offers unlimited 5G access for 1 year for just Rs...
)
AR Rahman's bassist Mohini Dey reacts to her split linked with composer's divorce with Saira Banu: 'I know exactly..'
)
Gandii Baat, XXX actress Aabha Paul sets Instagram on fire with hot photos
Home buyers and property developers can now enjoy exemption from service tax without much ado. A notification issued on Tuesday by the Central Board of Excise and Customs said that apart from the government agency (in this case, the local civic body), architects registered with the Council of Architecture, too, can issue a building completion certificate (BCC).
So can chartered engineers accredited to the Institution of Engineers and/or any surveyor licensed with the local body of the city or town or village where the property is located.
To get exemption from service tax, a home buyer must have a BCC from the local authority. The notification followed information that local authorities in some states do not issue BCCs. Others, like Maharashtra, take months to issue one. In Mumbai, almost 90% of the buildings do not have a completion certificate.
Mumbai developers have instead been issuing occupation certificates (OCs) to buyers as proof of completion of buildings. Developers find it easy to procure an OC rather than spending a huge amount to get a BCC from the authorities. An OC is issued when developers receive civic permission for water connections and sewage facilities.
Though a significant move, the notification has been interpreted differently by developers. Some said the flexibility could be abused. Others argued that outsourcing the job to independent accredited bodies would see lesser corruption.
Nayan Shah, managing director of Mayfair Housing, said that the appointment of outside agencies will save developers time to get a BCC, and spare home buyers from shelling out extra money for service tax.
But Deepak Goradia, managing director of Dosti Group, said that outside agencies will merely certify that the building has been built and flats are ready for sale. “The local civic authority will still be the final authority to issue the BCC,” he said. “Developers, in principle, are opposed to the levying of service tax in ready or under-construction buildings. It burdens buyers with unnecessary expenses.”
The Maharashtra Chamber of Housing Industry has decided to challenge this levy in the Bombay high court.
