Service tax regn for property dev. company
This query is : Resolved
21 April 2016
Company engaged in property development- Selling of Residential Apartments.
Company engaging Contractor with material for construction of building.
Some material directly purchased by company and issue to contractor on free basis for constuction purpose.
Under Service Tax which category Property Dev. Company should Register?
Company engaging Contractor with material for construction of building.
Some material directly purchased by company and issue to contractor on free basis for constuction purpose.
Under Service Tax which category Property Dev. Company should Register?
21 April 2016
Construction of residential complex
Construction services with respect commercial, industrial building and civil structure
Real estate agents.
Works contract services
Erection, commissioning and installation
All this code help you to undertake all kind of civil construction activities and real estate.
Construction services with respect commercial, industrial building and civil structure
Real estate agents.
Works contract services
Erection, commissioning and installation
All this code help you to undertake all kind of civil construction activities and real estate.
21 April 2016
Whether he can include all activities in Registration Certificate. If yes ,for taxation purpose which method he has follow? (for Service Tax).
Whether he can follow different methods for each project of same nature?
Whether he can follow different methods for each project of same nature?
21 April 2016
Yes, you can add any number of services in Registration of ST.
Whichever services provides based on services tax to be remitted. ST-3 also declare service each category if applicable.
Whichever services provides based on services tax to be remitted. ST-3 also declare service each category if applicable.
21 April 2016
Engaged contractor with material for construction by Developer, Under Service Tax which is the nature of service?
25 July 2025
Here’s a detailed explanation for your query about **Service Tax registration for a Property Development Company**:
---
### 1. **Service Tax Registration Category for Property Developer**
A property development company involved in **selling residential apartments and engaging contractors with or without material** typically falls under these service categories:
* **Works Contract Services** (when contractor is engaged with material):
Taxable under Service Tax as works contract is considered a composite service.
* **Construction Services (Commercial or Residential Complex)**:
Construction of residential complexes is taxable if the area exceeds 200 sq. meters and certain other conditions are met.
* **Real Estate Agent Services** (if the company is also involved in brokerage or facilitating sale/purchase).
* **Erection, Commissioning & Installation Services** (if applicable, for mechanical or electrical installations).
---
### 2. **Including Multiple Services in One Registration**
* **Yes, the company can include all relevant services under one Service Tax Registration.**
* The registration form (ST-1) allows you to select multiple service codes applicable to your business activities.
---
### 3. **Service Tax Payment Method**
* The company needs to **pay Service Tax on the taxable value of each service provided** under the respective category.
* For construction activities involving contractors, the developer often needs to pay Service Tax **under Reverse Charge Mechanism (RCM)** on the works contract service if the contractor issues a bill with material.
* For contractor services without material, tax is usually paid by the contractor.
---
### 4. **Can Different Projects Follow Different Methods?**
* **No clear provision allows choosing different Service Tax payment methods (normal vs RCM) for different projects of the same nature within the same company.**
* The method followed depends on the contractual arrangement and applicable Service Tax rules, not on the project basis.
---
### 5. **Engaging Contractor with Material - Nature of Service**
* When a contractor is engaged **with material supplied by the developer**, the service is considered as **Works Contract Service**.
* Under Service Tax law, **developer is liable to pay tax under Reverse Charge Mechanism** on the value of works contract service.
---
### 6. **Summary Table**
| Scenario | Service Category | Payment Responsibility |
| ----------------------------------- | -------------------------- | ----------------------------- |
| Contractor with material | Works Contract Service | Developer (RCM) |
| Contractor without material | Works Contract Service | Contractor |
| Construction of residential complex | Construction Service | Service provider (contractor) |
| Real estate brokerage services | Real Estate Agent Services | Service provider |
---
If you want, I can help you draft a compliance checklist or sample registration form (ST-1) selections based on your company’s activities. Need that?
---
### 1. **Service Tax Registration Category for Property Developer**
A property development company involved in **selling residential apartments and engaging contractors with or without material** typically falls under these service categories:
* **Works Contract Services** (when contractor is engaged with material):
Taxable under Service Tax as works contract is considered a composite service.
* **Construction Services (Commercial or Residential Complex)**:
Construction of residential complexes is taxable if the area exceeds 200 sq. meters and certain other conditions are met.
* **Real Estate Agent Services** (if the company is also involved in brokerage or facilitating sale/purchase).
* **Erection, Commissioning & Installation Services** (if applicable, for mechanical or electrical installations).
---
### 2. **Including Multiple Services in One Registration**
* **Yes, the company can include all relevant services under one Service Tax Registration.**
* The registration form (ST-1) allows you to select multiple service codes applicable to your business activities.
---
### 3. **Service Tax Payment Method**
* The company needs to **pay Service Tax on the taxable value of each service provided** under the respective category.
* For construction activities involving contractors, the developer often needs to pay Service Tax **under Reverse Charge Mechanism (RCM)** on the works contract service if the contractor issues a bill with material.
* For contractor services without material, tax is usually paid by the contractor.
---
### 4. **Can Different Projects Follow Different Methods?**
* **No clear provision allows choosing different Service Tax payment methods (normal vs RCM) for different projects of the same nature within the same company.**
* The method followed depends on the contractual arrangement and applicable Service Tax rules, not on the project basis.
---
### 5. **Engaging Contractor with Material - Nature of Service**
* When a contractor is engaged **with material supplied by the developer**, the service is considered as **Works Contract Service**.
* Under Service Tax law, **developer is liable to pay tax under Reverse Charge Mechanism** on the value of works contract service.
---
### 6. **Summary Table**
| Scenario | Service Category | Payment Responsibility |
| ----------------------------------- | -------------------------- | ----------------------------- |
| Contractor with material | Works Contract Service | Developer (RCM) |
| Contractor without material | Works Contract Service | Contractor |
| Construction of residential complex | Construction Service | Service provider (contractor) |
| Real estate brokerage services | Real Estate Agent Services | Service provider |
---
If you want, I can help you draft a compliance checklist or sample registration form (ST-1) selections based on your company’s activities. Need that?
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