Applicability of service tax

28. CONSTRUCTION OF RESIDENTIAL COMPLEX SERVICE

(A)   Date of Introduction: 16.06.2005 vide Notification No.15/2005-ST, dated 07.06.2005.                                                                         

(B)    Definition and scope of service:

         (i) “Construction of Complex” means —

(a)   construction of a new residential complex or a part thereof; or

(b)   completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or

(c)   repair, alteration, renovation or restoration of, or similar services in relation to, residential complex;

(Section 65(30a) of the Finance Act, 1994)

(ii) “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.

Explanation. — For the removal of doubts, it is hereby declared that for the purposes of this clause, —

(a) “personal use” includes permitting the complex for use as residence by another person on rent or without consideration;

(b) “residential unit” means a single house or a single apartment intended for use as a place of residence;

         (Section 65(91a) of the Finance Act, 1994)

“Taxable Service” means any service provided or to be provided to any person, by any other person, in relation to construction of complex;

(Section 65 (105) (zzzh) of the Finance Act, 1994)

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true that such common areas are not provided by your client, but these are integral part of the construction, so its taxable service

thansk for your reply.

Actually in my case assessee constructs each house on a seperate plot of land. he has entered into construction contract with state housing board to construct only houses.

So now no common area or other facilities are present in my case.

the definition of building consists of common areas, without which building can not exist, 

its irrelvent that common area is provided by yourself or state development board, but the identity is residencial complex,. 

Originally posted by : U S Sharma
	the definition of building consists of common areas, without which building can not exist,  its irrelvent that common area is provided by yourself or state development board, but the identity is residencial complex,.

yes agreed           

Originally posted by : U S Sharma
	the definition of building consists of common areas, without which building can not exist,  its irrelvent that common area is provided by yourself or state development board, but the identity is residencial complex,.

Dear sir,

Please tell me how can it be irrelevant. If service provided does not provide a service which is required for being covered under specific service, he will not be liable to service tax.

Like in my case definition of residential comples stipulates that it shall be comprising of a common area and other facilities. Now if the service provider i.e. contractor does not provide common area or other services, it will nor be regarded a residential complex as all the condition are not satisfied. Now whether housing board provides or not will not affect the contractor as contractor has already provided services.

the residencial complex is having common area, and thats why its catagorized as residencial complex, 

common area is there, and it does not matter that its provided by yourself ( the service provider) or the owner, but the buidling is catagorized as residencial complex, 

the service tax rules specify the building as residencial complex where the common areas are situated, not provided. 

and the taxable service provider is not asked to provide the common area, but he is classifed as service provider to construction of residencial complex.

I have said that the contractor has build any sort of complex. He has just build houses on seperate plot of land some of them are of single floor and some are of double floor

(B)    Definition and scope of service:

         (i) “Construction of Complex” means —

(a)   construction of a new residential complex or a part thereof; or

(b)   completion and finishing services in relation to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or

(c)   repair, alteration, renovation or restoration of, or similar services in relation to, residential complex;