applicability of service tax on maintenance or repairservice

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 December 2010 Dear All,

We are service provier under construction of residential complex having turnover > 10 L. In addition to the main service of construction of residential complex, we are providing the service for maintenance of residential apartments by charging Rs.2000 per 1000 sft. The maintenance charges of Rs.2000/- inclusive of material like Diesel, Petrol, Common area Electricity, water bills, lift & Genset AMC charges & others services like Security, House keeping, Gardening etc (which costs approx Rs.1500/- per 1000 sft).

What is the value to be considered for payment of service tax under maintenance and repair service?

CA. BHAVIK DILIPBHAI MEHTA

CA. BHAVIK DILIPBHAI MEHTA (Expert)
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18 December 2010 If you are collecting amount which equals to the total amount of expenditure incurred by you from the client then there is no need to pay service tax since you can easily say that the same is reimbursement from the members of the society ( residential complex).

Also if the society is formed which collects the maintainance amounts from the members & maintains the society then there will be no need to pay the service tax.

However if you are in the business of maintiaining the residential complexes then the service tax will be payable on the value of the service provided/to be provided. In short service tax will be payable onf Rs. 2000/- & on Rs. 1500/- as well.

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Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2010 DEAR BHAVIK DILIPBHAI MEHTA SIR,

WE ARE IN THE BUSINESS OF MAINTAINING THE RESIDENTIAL COMPLEXES. THE AMOUNT COLLECTING FROM THE APARTMENT MEMBERS TOWARDS MATERIALS RS.1500/- AND FOR SERVICES RS.500/-. WE ARE RAISING TWO SEPARATE INVOICES INFAVOUR OF APARTMENT ASSOCIATION, TOWARDS MATERIAL RS.1500/- AND SERVICER RS.500/-. WHETHER WE NEED TO PAY THE SERVICE ON FULL AMOUNT OF RS.2000/- OR RS.500/- ON SERVICE PORTION.

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