Whether levy of service tax or not

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 April 2014 What is a status of service tax in works contract for builder of construction of so many single row house in same type in a township.

Annu Agarwal

Annu Agarwal (Expert)
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19 April 2014 As per my view service tax is applicable on construction of row houses in same type of township (complex).
Reason for the analysis:
1.Construction of complex is a declared service as per Section 66E(b).
2. The entry no 14. of the Mega Exemption notification 26/2012 EXEMPTS
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;
As per definitions contained in the mega notification…

(zc) "residential complex" means any complex comprising of a building or buildings, having more than one single residential unit;

(ze) "single residential unit" means a self-contained residential unit which is designed for use, wholly or principally, for residential purposes for one family;

With refernce to the above notification it can be concluded that in case of row houses there are more than one single residential units andthusthe exemption provided by notification no. 26/2012 does not apply to row houses.