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Discussion > Service Tax > Queries >

Service tax on construction of residential complex

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Accountant


[ Scorecard : 556]
Posted On 09 May 2013 at 12:31 Report Abuse

Dear Sir

We are a Firm And Construction of Residential Complex in my ouwn land total 11 FLats are constructed and no constract work given to any Contractor for Construction of this apaprtment.

we constructed my appartment taken labour on daily basis and materilas purchased and no contractor involved in this work

I am Constructed a Appartment containg 11 Flats as per New ST Act and Negative list I am liable to Pay Service Tax ?

As per the Old Act. Construction of Residential Complex More than 12 Flats is Liable to pay ST Below 12 Flats is not liable to pay ST Present what is Correct? 

as per our knowledge I am not collect ST from My Customes an ST Superintendent tell even if you consturct one Flat also you are liable to pay ST as per new Rules From 1-07-2012

Please tell Which is corret and send me a copy of proof i.e. Ciruclar or Notification 

Thanking you

 


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CA. RAVIKUMAR
Chartered accountant


[ Scorecard : 1545]
Posted On 09 May 2013 at 13:32

Hi,

You are liable for Service tax

 

Exemption is available for single residential unit otherwise than as a part of a residential complex;

Find the attachment containing the mega exemption notification for ypour query refer only Sl. no 14(b)





CA. RAVIKUMAR
Chartered accountant


[ Scorecard : 1545]
Posted On 09 May 2013 at 13:33

Hi,

You are liable for Service tax

 

Exemption is available for single residential unit otherwise than as a part of a residential complex;

Find the attachment containing the mega exemption notification for ypour query refer only Sl. no 14(b)

reach me at: rkb @ icai.org



Attached File : 91358 1172190 mega exemption notif.pdf downloaded 2004 times


Prabhat Kumar
Advocate & Consultant


[ Scorecard : 420]
Posted On 09 May 2013 at 13:57

Since you hve contructed more than one unit for sale ,you are liable foe Service Tax. only if you receive the entire consideration after getting the completion certificate,Service Tax is not payable as it will amount to sale,covered in the Negative list.



Total thanks : 1 times



CA. RAVIKUMAR
Chartered accountant


[ Scorecard : 1545]
Posted On 09 May 2013 at 14:41

Agree with prabhat kumar



TAPAN RAY
ACP Inspector


[ Scorecard : 33]
Posted On 15 May 2013 at 17:13

The earlier definition of residential complex specifically excluded building which has 12 or less than 12 residential units. There is no such exclusion provided in the present statute except sr. No. 14 of Notification No. 25/2012 -ST dated 20.06.2012 where in construction of single residential unit is exempt from payment of service tax




Unknown
Sr


[ Scorecard : 47]
Posted On 07 July 2013 at 00:20

Hi,

I have purchased underconstruction flat in sept 2011, At the time of agreement Builder was not asked about Service Tax but Now in June 2013 he is asking for Service Tax with Inerest from the date of agreement.

My question is As per my knwoladge Service tax on construction is wef 1 july 2012. So In this should i need to pay ST for 2 yr or 1 yr.

Also At the time or after 2 yrs of  the agreement builder does not inform about Service tax, sudden he is asking for Interest, Kindly suggest should i need to pay tax or not. what action i need to take, How do i need to handel this situtaton.

Pls guide me through.

Thanks.




B.Arulmani
Chartered Accountant


[ Scorecard : 217]
Posted On 24 November 2013 at 10:59

My client has constructed a Resi complex consisting of 20 Flats, at the time of construction 5 flats has been booked, as per new Law Service Tax is applicable for this 5 flats, the rest of 15 flats has completed by availing bank loan. Now how the service tax to be dealt for the 15 Flats as constuction was fully completed & ready for Sale?

Department officials has been in view of that Service Tax is applicable for all 20 flats? Whether their stand is correct? or

Shall we take a stand of paying service Tax for 5 flats & non applicability of Service Tax for 15 flats as construction was fully completed at time of sale?

 




CA Ashish Joshi
CA


[ Scorecard : 177]
Posted On 26 February 2014 at 11:57

@ B.Arulmani

 

Sir,

Service tax liability occurs depending upon the status of assessee.

If your client is Individual/Firm providing specified services then liability occurs for 5 flats whose collection is done.

If it is any other assessee then depending upon % of construction of all 20 flats, the service tax should be paid.

 

Correct me if I am wrong.

CA Ashish Joshi




Manoj Agarwal
Service Tax Consultant Rourkela ServiceTaxExpert@yahoo.com


[ Scorecard : 1704]
Posted On 26 February 2014 at 14:23

@ B. Arulmani You are liable to pay service tax for 5 flats and since no consideration is received till receiving completion certificate for other 15 flats, that would be covered under sale of flats.


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