Construction of single residential unit – st exemption

Dear Sir/ Madam,

    I come to know that service tax is not applicable on construction of single villa (in terms of Item No. 14 of the mega notification 25/2012-ST dated 20.06.2012).

   We are registered company under works contract in Karnataka we developed total 350plots and sold. After we did agreement for construction of residential units with each costumer.

In this case

ST Exemption is available?

The input credit available during executing the project can we consider for other project of our company?

Replies (3)

Hi Vighnesh,

If you have constructed the 350 bunglows in a residential complex then the same would be taxable.

Only a bunglow not forming part of a residential complex is exempted.

I believe, in your case, mere separate agreement would not warrant exemption.

I Confused about meaning of "residential complex" Is there any explanation given for this word..?

not specifically provided under Service tax law... you may search in the general dictionary...

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