Constrution of residential complex

This query is : Resolved

Raj Agarawl (Querist)
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05 January 2013 Sir/Madam

One of client is engaged in construction of residential complexes, recently they are engaging in contruction of building having 9 flats only.

Is they are also liable for service tax from 01/07/2012. As there 12 residential unit of exemption avaliable in service tax.
Is there is any effets of negative list of service tax on above mention service.

Please clarify.

Kaushik Vinod

Kaushik Vinod (Expert)
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06 January 2013 Dear Raj,

As per Notification No.25/2012 item No.14
Services by way of construction, erection, commissioning, or installation of original works pertaining to,-
(b) a single residential unit otherwise than as a part of a residential complex;

The earlier definition of complex excluding the building which has 12 or less residential units has been omitted.

Only single residential units are exempt from Service tax by mega exemption notification.

Thanks