Service Tax Construction
This query is : Resolved
08 February 2011
Hi,
If a builder constructs flats to be sold on its own ( that is land is also owned by the builder). The complex he constructs contains both commercial and residential flats.
So under what service should he register
- Sec 65 {30}construction of complex
- Sec 65 {90a) residential complex
Regards, Rajiv Sharma
(r_raajiv@rediffmail.com)
If a builder constructs flats to be sold on its own ( that is land is also owned by the builder). The complex he constructs contains both commercial and residential flats.
So under what service should he register
- Sec 65 {30}construction of complex
- Sec 65 {90a) residential complex
Regards, Rajiv Sharma
(r_raajiv@rediffmail.com)
08 February 2011
To the buyers he is selling residential flats, service tax shall be charged and paid under construction of residential complex service.
With respect of Commercial construction, it appears to be in the nature of self service and no Service tax is payable.
With respect of Commercial construction, it appears to be in the nature of self service and no Service tax is payable.
08 February 2011
Dear Rajeshji,
Thanks for your reply.
By commercial flats i mean the builder ( Pvt Ltd Company in this case)will be constructing shops.... still Service Tax will not be leviable on commercial portion.
Is it not commercial construction taxable.
Thanks for your reply.
By commercial flats i mean the builder ( Pvt Ltd Company in this case)will be constructing shops.... still Service Tax will not be leviable on commercial portion.
Is it not commercial construction taxable.
08 February 2011
Dear rajiv
In my opinion, as per service tax Rules , if the Construction site contains 12 residential units ,then it is covered under the definition of the residential complex....other wise you can register here as construction of complex.......Service tax is levied on both the cases....thats is in case of Residential flats as well as for commercial shops also
In case of Any Query Do mail me on my mail id which is rahulajaysinghal@gmail.com
In my opinion, as per service tax Rules , if the Construction site contains 12 residential units ,then it is covered under the definition of the residential complex....other wise you can register here as construction of complex.......Service tax is levied on both the cases....thats is in case of Residential flats as well as for commercial shops also
In case of Any Query Do mail me on my mail id which is rahulajaysinghal@gmail.com
08 February 2011
You have to register under both services.
08 February 2011
@Rajeev
There is slight difference in case of residential complex, and commercial construction.
In case of residential complex, construction of residential complex itself is a service. It follows from deeming provision in the Act itself.
In case of commercial construction, you have to provide this service to some other person. As the builder is constructing the shop for itself, and selling the shop after construction, such construction is in the nature of self-service and no service tax is payable. In that case, CBEC Circular 108/2009 is still applicable.
There is slight difference in case of residential complex, and commercial construction.
In case of residential complex, construction of residential complex itself is a service. It follows from deeming provision in the Act itself.
In case of commercial construction, you have to provide this service to some other person. As the builder is constructing the shop for itself, and selling the shop after construction, such construction is in the nature of self-service and no service tax is payable. In that case, CBEC Circular 108/2009 is still applicable.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Off Market debit and credit transaction
- Itr 1 processing
- Showing Gift from relative in ITR for this year
- ITR returnFY25-26
- ITR 2 Short Term gain & Long term gain
- Form 10E u/s 89(1). Need clarification because experts opinions differ !!!!
- INCOME TAX ON REDEVELOPEMENT OF FLAT
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 1: Details for showing Exempt Income
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
