vivek (Articles) (27 Points)
30 September 2014Hello All..
My Client is a private construction company(Pvt Ltd) they built a resedential House for its Director for Rs 60 laks..
Director paid Rs 60 Laks in part payments throughout the period of construction to the company and now the constructions are over.
Whether this Attracts Service Tax??
Thanks In Advance :)
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 30 September 2014
It can attract service tax, if the same falls under the residential unit as a part of residential complex.
However, if it is a residential unit otherwise than as a part of a residential complex, the same shall get exempted by virtue of entry no. 14(b) of N/N 25/2012- ST(i.e. Mega Exemption).
Ajit Bhati
(Chartered Accountant)
(214 Points)
Replied 30 September 2014
Service tax will attract if its fall under Residential complex service.
Service tax will arise in respect of every stage due payment during the construction period and before completion certificate is obtained from competient authority.
No service tax for Single Residental House as pointed by CA Sumit
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