I am a Chartered Accountant practicing in Ghaziabad. I have a problem on Service Tax. My client got a works contract in November, 2008 under Kashiram Yojna of Uttar Pradesh Government. The houses constructed under Kashiram Yojna were distributed to poor persons without any profit. Uttar Pradesh Government gave First contract for construction of houses to different development authorities of the districts. Then development authority sub – contract the work to different contractors who constructed the houses. It was said by the development authorities that this Yojna is functioning on no profit – no loss basis and is for the benefits of the poor so no Service Tax is payable on these works contract. That’s why my client got no payment for Service Tax from the development authorities and not paid Service Tax on these contracts. Now, audit team from Service Tax Department came to my client and said that you are required to make payment of Service Tax for the payments received from development authorities under Kashiram Avaas Yojna. You are requested to provide remedial information. I shall be highly obliged.
Thanks
Yours Faithfully, Mahesh Chand Gupta Chartered Accountant. email – camcg49@gmail.com, maheshjindal2009@rediffmail.com Mobile. 9871648140, 9212566323 Mahesh Jindal And Company Chartered Accoutnants, B – 13, Lohia Nagar Market, First Floor, Ghaziabad - 201001
09 September 2010
You could argue that the residential complex didi not exist. Secondly that the houses were for the personal use of the govt. If so then they would not be covered under the defintion of complex.
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