CA. Rachna Parashar (partner) (196 Points)
08 March 2013One of my client is a builder , in one of his project along with flats he is going to provide kids play area, swimming pool for kids and gymnasium.What will be the service tax liability on it if he charges his customers for these amenities and in case he charges nothing for it.
Regards
Prashanth S K
(Practice)
(148 Points)
Replied 08 March 2013
In the present scenario almost every builder offers these amenities along with the constructed apartment and hence it can be treated as a naturally bundled service as per the new provisions related to service tax. So the service which partakes the essential character can be chosen and hence both will be classified under construction of complex, building or civil structure service and taxed accordingly.
Kindly correct me if i am wrong.
Regards
Prashanth.
Dayal
(Gen. Manager - Indirect Taxation)
(3434 Points)
Replied 08 March 2013
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