Urgent st on construction of residential complex

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rajesh (Querist)
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09 May 2013 Dear Sir

We are a Firm And Construction of Residential Complex in my own land total 11 FLats are constructed and no construct work given to any Contractor for Construction of this apartment.

we constructed my apartment taken labour on daily basis and materials purchased and no contractor involved in this work

I am Constructed a Apartment containing 11 Flats as per New ST Act and Negative list I am liable to Pay Service Tax ?

As per the Old Act. Construction of Residential Complex More than 12 Flats is Liable to pay ST Below 12 Flats is not liable to pay ST Present what is Correct?

as per our knowledge I am not collect ST from My Customers an ST Superintendent tell even if you construct one Flat also you are liable to pay ST as per new Rules From 1-07-2012

Please tell Which is correct and send me a copy of proof i.e. Ciruclar or Notification

Thanking you

CA Vikas Acharya

CA Vikas Acharya (Expert)
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09 May 2013 yes as per new rules its not about no. of units.
1st of all if you constructing it for the purpose and not for self use and also then you collecting any amount from the buyers before completion of complex than its taxable.
this is written in point (b) of section 66E of sevice tax.

exemption is only available if you make a single resedential unit it is given under notification 25/2012 entry no 14(b)

now tax liability and rate are will be appliacble after abatement. for that see notification 26/2012