Service Tax Construction
This query is : Resolved
Rajiv sharma
(Querist)
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)
Rajesh Kumar
(Expert)
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.
Rajiv sharma
(Querist)
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.
Rahul Singhal
(Expert)
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
Aditya Maheshwari
(Expert)
08 February 2011
You have to register under both services.
Rajesh Kumar
(Expert)
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Capital Gail Exemption Certificate
- Taxation of crypto futures in India Fy 2026- 2027
- MSME disclosure and disallowance
- EPF ECR NEW RULES Sep 17th 2026
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Accounting treatment of AMC alongwith the purchase of Laptop
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
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
