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IS SERVICE TAX APPLICABLE ON CONSTRUTION OF INDVL HOUSES??

Mukesh Agarwal (CA student) (1321 Points)

28 September 2007

SIR, WE ARE IN CONSTRUCTION OF INDIVIDUAL HOUSES. WE CONSTRUCT 1 SINGLE HOUSE AT 1 PLACE. WHETHER IT WILL ATTRACT SERVICE TAX? PLS GUIDE US!

THNX

M.AGARWAL

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13 Replies

MAHENDRA IYER (SERVICE) (315 Points)
Replied 28 September 2007

The provision relating to service tax in the category Construction of Complex Service relates to construction of residential complex. A complex should comprise ofmore than 12 residential units located either in a single building or in more than 1 building. Hence if your company had appointed a contractor to build residential houses within a premises in which the aggregate number of residntial unit is more than 12, service tax provision will apply. However pls note that if a builder /promoter / developer or any other person constructs such complex on its own then the ST provision will not apply.

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CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 28 September 2007

Yes, it attracts service tax but only if house has more then 12residential units

Mukesh Agarwal (CA student) (1321 Points)
Replied 28 September 2007

will it attract ST even if we buld 12 houses in a year at different places?

CA. Dashrath Maheshwari (TaXpert) (15103 Points)
Replied 28 September 2007

No, it will not attract ST

(Guest)

when company XYZ make guest house(more that 12 units) for emplyees and pay full service tax to the trunkey contructor who build on behalf of the company XYZ.My question is that-"Can the Company XYZ avail input tax credit for the service tax it paid to the trunkey contructor". please reply. regards.

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(Guest)

Dear Sir

A builder is constructing row houses and getting the registry on the plot area. Is service tax applicable on the indvidual or the builder on the constructed property?

SKumar

(Guest)

yes input service tax can be claimed

(Guest)

the service tax will be collected from the buyers by the builder of the property. responsibility lies with the property developer who is making the sale

(Guest)

the service tax will be collected from the buyers by the builder of the property. responsibility lies with the property developer who is making the sale

cashekar (Chartered Accountant) (133 Points)
Replied 10 June 2008

The answer will depend on the nature of output service is rendered. Please let me know what is the nature of output service?

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(Guest)

I C & F OF 2 COMPANY

WHAT MY SERVICES IS COVER IN SERVICE TAX

MY GROSE RECEIPT IS LESS THEN 8 LAC

THANKING YOU

(Guest)

Hello All,

Could someone please guide me on method used to compute the service tax on "Consturction of residential complex" , or if some URL can help, please provide the URL address.

Thanks

Shashank.

(Guest)

Sir , I have purcased one row housefrom a builder in the year 1998 , unfortunaely due to some financial problems i could not register my property . now when i have approaced builder , the builder is askin for 12.5% of service tax along with the registry amount . Please suggest is this amount viable to pay .is there any other way to solve the case