Service Tax on construction of low cost houses

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Dinesh Achari (Querist)
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31 March 2010 Sir,

We have got work order from doner for construction of low cost houses for flood affected area in Karnataka. The Work order says Taxes will be paid extra if applicable. Further stating that Duties and Taxes exempted considering work related to construction of low cost houses for flood affected work.

Request to clarify.

Madhukar N Hiregange

Madhukar N Hiregange (Expert)
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01 April 2010 Whether the same comes under the deifntion of complex maybe confirmed. The house built for the Govt couldbe said tobe for the personal use of the govt. Then the same wouldbe exlcuded.
Under residential house the concept of commerciality has no place.

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