26 April 2011
I AM CONSTRUCTING RESIDENTIAL COMPLEX HAVING 5 SEPARATE BUILDINGS HAVING 12 RESIDENTIAL FLATS IN EACH OF THE BUILDING.
UNDER SERVICE TAX DEFINATION... “residential complex” means any complex comprising of— (i) a building or buildings, having more than twelve residential units;
ii) a common area; and
iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person "
CAN I FALL UNDER SERVICE TAX IF I HAVE FULFILLED THE ALL CONDITIONS OF ABOVE DEFINATION EXCEPT 2 BELLOWS
(i) MY each building having only twelve residential units;
(ii)My layout of such premises is NOT approved by an authority under any law for the time being in force
Please reply me and also say the tax rate and abatement if service tax applicable .
27 April 2011
(i) a building or buildings, having more than twelve residential units;
it mean if in one complex there are more than 1 bulding than for the purpose of counting 12 residential unit all unit shall be clubed and in your case it is 60 unit hence your 1 condition for liability of service tax get fullfilled.
(ii) normally for lay out of complex like in your case required approval from town development authority in all over india u should confirm it. you have to take the permission
there are following sequance for ascertaining liability for service tax
if vat payable under state act than service tax payable under work contract and effective service tax rate 4.12 % without cenvat credit
if vat is not payable than it will taxable under construction of complex service.
but in my case lay out is submitted for approval but not sanctioned by the authority as the area is still not covered under town planning. So it will be approved when new area for town planning will be sanctioned.
CAclubindia
