Can any one help me on whether a builder (Proprietorship Firm) who undertake the construction of Residential House in which circumstances the builder will be liable for service Tax. under following situations
1. Construction of single residential House
2. Construction of A Duplex for residential purpose
3. Construction of Three house on a single plot i.e. house no. 01, 02 & 03 on a single plot no. 89.
The builder has already constructed 5 commercial complex and one residential house and has made a total construction agreement in the current year for rs. 4.5cr in a single fin. year.
the parties in the construction agreement are only two the land owner and the builder who has made a construction agreement with the land owner.
The construction is with material
the payment system is
1. Advance 25%
2. 25% after 3 months
3. 25% after 6months
4. 20% after 12 months
5. 5% after completion
The value of land does not form the part of construcxtion agreement
Query
1. Liability of service Tax
2. Percenatge of Service Tax Liability
3. The Valuation
CAclubindia
