Applicability of service tax on open plot

Originally posted by : RAMESH
	Dear All, A Limited company having own land and it is going to develop the land by its own resources by engaing the labour and hiring necessary machinary for making small plots for sale. Development includes planning, designing of layout, site clearance, Land reclamation, development of internal roads, water supply, sewerage, electrification etc. What is the applicability of service tax?

“Site formation and clearance, excavation and earthmoving and

demolition” includes,-

(i) Drilling, boring and core extraction services for construction,

geophysical, geological or similar purposes; or

(ii) Soil stabilization; or

(iii) Horizontal drilling for the passage of cables or drain pipes; or

(iv) Land reclamation work; or

(v) Contaminated top soil stripping work; or

(vi) Demolition and wrecking of building, structure or road,

but does not include such services provided in relation to agriculture,

irrigation, watershed development and drilling, digging, repairing,

renovating or restoring of water sources or water bodies.

(Section 65(97 a) of Finance Act, 1994 as amended)

“Taxable service” means any service provided or to be provided to any person,

by any person, in relation to site formation and clearance, excavation and

earthmoving and demolition and such other similar activities.

(Section 65(105)(zzza) of Finance Act, 1994 as amended)

C. Rate of Tax & Accounting Code:

Rate of Tax Accounting

Code

Service Tax 10% of the value of services 00440306

Education Cess 2% of the service tax payable 00440298

Secondary and H.

Education Cess

1% of the service tax payable. 00440426

Other –

Penalty/interest

As levied or applicable 00440307

(Rate of tax is effective from 24.02.2009.)

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RAMESH

U S Sharma

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