Service tax exemption on construction of single house
This query is : Resolved
09 January 2013
Service tax is exempt on construction of single residential house but my query is whether any person specified for this exemption or any person can get that exemption.
For eg: if CA X construct a house can claim exemption?
For eg: if CA X construct a house can claim exemption?
10 January 2013
Dear Gurpreet,
This Exemption is given in Clause(zc) in para 2 to Notification No.25/2012-ST dated 20-06-2012.
Any one can claim this exemption.
"residential complex" means any complex comprising of a building or buildings, having more than one single residential unit;
Thanks
This Exemption is given in Clause(zc) in para 2 to Notification No.25/2012-ST dated 20-06-2012.
Any one can claim this exemption.
"residential complex" means any complex comprising of a building or buildings, having more than one single residential unit;
Thanks
10 January 2013
Sir
My query is not regarding Residential Complex.
I want to ask that the exemption from service tax is given in constructing a single house,is given to all persons(architect) also?
My query is not regarding Residential Complex.
I want to ask that the exemption from service tax is given in constructing a single house,is given to all persons(architect) also?
11 January 2013
Yes Gurpreet any one can claim the exemption if he is not providing the Services of construction of Residential Complex.
11 January 2013
Thank you Sir,
Can u Please provide me the refrence about this any notification or any wordings of act from which we can conclude this.
Can u Please provide me the refrence about this any notification or any wordings of act from which we can conclude this.
11 January 2013
As all other services of rchitect are taxable.whether this service too taxable?
24 July 2025
Here’s a detailed explanation with references for your query on **service tax exemption on construction of a single residential house**:
---
### **1. Exemption on Construction of Single Residential House**
* **Notification No. 25/2012-ST dated 20-06-2012**, Clause (zc) of Paragraph 2 grants exemption from service tax on the service of **construction of a single residential unit**.
* The **exact wording** of the exemption is (paraphrased):
> *"Service by way of construction of a single residential unit otherwise than as a part of a residential complex"* is exempt.
* **Residential Complex** is defined as a complex comprising more than one single residential unit.
---
### **2. Who Can Claim This Exemption?**
* The exemption applies **to anyone providing the service of construction of a single residential house**, regardless of their profession or status. So, whether the service provider is a builder, contractor, architect (if acting as a builder/contractor), or even an individual constructing the house, the exemption applies **provided it is a single residential unit** and **not part of a larger complex**.
* For example, if **a CA (Chartered Accountant) X constructs a single house**, they can claim the exemption if they are providing the construction service themselves.
* The key is **the nature of the service provided**, not the identity of the service provider.
---
### **3. Reference**
* **Notification No. 25/2012-ST, Clause (zc) of Para 2:**
[Link to Notification (archived)](https://cbic.gov.in/resources//htdocs-cbec/excise/cx-acts-rules/notfns-2012/st25-2012.pdf)
(Please check CBIC or official GST portals for the latest version)
* The exemption is also supported by the definition of "residential complex" and "single residential unit" in the Notification.
---
### **4. Are Architectural Services in This Context Taxable?**
* **Architectural services as such are taxable**, except for the **specific exemption on construction of a single residential house** where the service provider is directly involved in construction.
* If an architect is providing only **design services**, it is taxable as “Architectural Services” under service tax.
* If the architect is also providing **construction services** for a single residential unit (for example, acting as a contractor or builder), then the **construction service exemption** applies for that part of the service.
---
### **Summary:**
| Question | Answer |
| ----------------------------------------------- | --------------------------------------------------------------------------- |
| Is exemption available only to certain persons? | No, **any person** can claim it if service is construction of single house. |
| Does it apply to an architect? | Only if architect is providing construction services, not just design. |
| Is architectural design service taxable? | Yes, taxable under service tax. |
| Reference | Notification No. 25/2012-ST Clause (zc), Para 2 |
---
If you want, I can help draft a formal note citing this for your auditors or team. Would you like that?
---
### **1. Exemption on Construction of Single Residential House**
* **Notification No. 25/2012-ST dated 20-06-2012**, Clause (zc) of Paragraph 2 grants exemption from service tax on the service of **construction of a single residential unit**.
* The **exact wording** of the exemption is (paraphrased):
> *"Service by way of construction of a single residential unit otherwise than as a part of a residential complex"* is exempt.
* **Residential Complex** is defined as a complex comprising more than one single residential unit.
---
### **2. Who Can Claim This Exemption?**
* The exemption applies **to anyone providing the service of construction of a single residential house**, regardless of their profession or status. So, whether the service provider is a builder, contractor, architect (if acting as a builder/contractor), or even an individual constructing the house, the exemption applies **provided it is a single residential unit** and **not part of a larger complex**.
* For example, if **a CA (Chartered Accountant) X constructs a single house**, they can claim the exemption if they are providing the construction service themselves.
* The key is **the nature of the service provided**, not the identity of the service provider.
---
### **3. Reference**
* **Notification No. 25/2012-ST, Clause (zc) of Para 2:**
[Link to Notification (archived)](https://cbic.gov.in/resources//htdocs-cbec/excise/cx-acts-rules/notfns-2012/st25-2012.pdf)
(Please check CBIC or official GST portals for the latest version)
* The exemption is also supported by the definition of "residential complex" and "single residential unit" in the Notification.
---
### **4. Are Architectural Services in This Context Taxable?**
* **Architectural services as such are taxable**, except for the **specific exemption on construction of a single residential house** where the service provider is directly involved in construction.
* If an architect is providing only **design services**, it is taxable as “Architectural Services” under service tax.
* If the architect is also providing **construction services** for a single residential unit (for example, acting as a contractor or builder), then the **construction service exemption** applies for that part of the service.
---
### **Summary:**
| Question | Answer |
| ----------------------------------------------- | --------------------------------------------------------------------------- |
| Is exemption available only to certain persons? | No, **any person** can claim it if service is construction of single house. |
| Does it apply to an architect? | Only if architect is providing construction services, not just design. |
| Is architectural design service taxable? | Yes, taxable under service tax. |
| Reference | Notification No. 25/2012-ST Clause (zc), Para 2 |
---
If you want, I can help draft a formal note citing this for your auditors or team. Would you like that?
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
- EXEMPTION UNDER SECTION 54 FOR UNDER CONSTRUCTION FLAT
- Deduction for HUF
- Upload Level Validation Error
- How to add NRE account to income tax profile?
- Salary u/s 194C
- Nill TDS Return FY 2025-26
- Merger issue
- Sale of foreign shares by Indian resident
- Filing ITR U
- Form 10E requirement for Leave encashment and Gratuity received at retirement
- Govr. Subsidies Schemes Available - shipyard Construction in india
- GST ITC in ECL and GST PURCHASES DATA IN AIS
- GST rate on monthly hiring of commercial vehicle given for transportation.
- TAXABILITY OF STATE INSURANCE MATURITY RECEIPTS BY RAJASTHAN GOVERNMENT EMPLOYEE ON RETIREMENT ?
- Document to add trade name
- GST Partners addition
- Non-disclosure of Foreign Shares & Dividend in Past ITRs – How to Rectify & Report Now?
- ICWAI-Final best coaching center for online by English
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Refund_ Insufficient in credit ledger
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
