Is service tax exempt on more than 12 Individual house contr

This query is : Resolved

Manoj Saini (Querist)
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27 September 2010 Case: A civil contractor has been done various contracts to build individual houses more than 12 of local government authorities. He dose not charged service tax on those contracts and does not paid the same. Due to he work for non-profit making housing authorities and individual houses. Please sort out my following quires:-

Query:
(1) Will independent houses (Exceeding 12) at one site of local authorities is taxable under construction of residential complex.
(2) What is the definition of complex or apartment? Will scattered units be taxable as complex or apartments or one common roof is necessary for apartments or complexes.
(3) What will be the service tax on the contractor and under which category? Here is any notification to save tax liability.
(5) Will it make any difference if the layout plan is approved or not ?

CA Shailesh Kumar Bhagat

CA Shailesh Kumar Bhagat (Expert)
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28 September 2010 1. Yes independent houses ( exceeding 12) at on complex having common area is taxable.

2. Any complex comprising of
(i) a building or buildings , having more than 12 res. units,
(ii)A coomon complex, and
(iii) aany one or more facilities or services

located within a premises and the layout is approved by authority.

3. Service tax 10%.
4. If the plan is not approved , it will be covered under the head Works contract.

Yashwanth Jain

Yashwanth Jain (Expert)
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06 October 2010 notification No. 18/2005 provides for an option for abatement where the service provider will be liable to pay service tax only on 33% of the gross value charged provided that he does not avail cenvat credit on inputs and input services.

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