04 November 2011
my client developed a residential complex with 8-flat.are they liable to pay service tax? and if liable on what amount service tax charged? Residential Complex not build for personal Use.
04 November 2011
As per Section 65 (91a) residential complex” means any complex comprising of— (i) a building or buildings, having more than twelve residential units; (ii) a common area; and (iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.
Thus, to tax a service under the construction of complex services it is necessary that there is a construction of residential complex. Residential complex should satisfy all the above condition to be taxed under service tax act. Therefore it can be concluded that in your case ur client is not liable to pay service tax.
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