Query on service tax on construction of residential complex

Queries 1630 views 2 replies

Dear Member,

I would like to ask two query related to service tax on construction of residential complex;

1. A company constructing a residential complex of 12 or more unit?

(under which head this service will be covered and service tax will be paid? according to the provision of service tax , such service   is covered under two head of service notified by govt.- one is construction of residential complex and second is Works contract services.)

2. A company constructing a residential complex of les than 12 unit?

under which head , service tax will be paid by assessee

3. Above service provider can avail the benefit of "Works Contract (composite scheme for payment of services tax) rules, 2007"

Please provide the clarification on above doubts

Thanking You

Regards

Vivek Kumar Sharma

 

 

 

 

Replies (2)

1. If you are paying vat under works contract , right classification is works contract. You can opt composition scheme.

2. Less than 12 units , no service tax liability.

The two services construction of residential complex and Works contract service are different by nature.

If the land owner and constructor is same then it will be covered under "construction of residential complex service".

Works contract service applies when the land is not owned by the contractor.

If it is works contract, there is no rule of 12units, etc... The limit is 8Lakhs turnover per year.


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