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Service tax applicable in construction services

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Querist : Anonymous

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Querist : Anonymous (Querist)
07 October 2014 Sir,

What service tax applicable to Contractor (under which services) for

Construction of independent floor on 5 plots.

The contractor have to complete construct and handover to the firm back, where firm is the owner of land.


Thanks

08 October 2014 In case you are making only a single residential unit only for a single family then service tax will be exempt on the above.

However, building comprises more than one residential unit then service tax will be taxable under works contract on 40% value net rate of service tax will be 4.944%.

Further, in case service recipient is a corporate and provider is non-corporate reverse charge will also be applicable.


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