service tax

Sir you mean residential work of what?

As per my knowledge...

There is no service tax on construction of residential flat if the builder has constructed the flats on his own.

Central Board of Customs & Excise has also clarified it vide service Tax Circular No.96 dated 23rd August 2007 as under:

"If no other person is engaged for construction work and the builder / promoter / developer / any such person undertakes construction work on his own without engaging the services of any other person, then in such cases,-
(i) service provider and service recipient relationship does not exist,
(ii) services provided are in the nature of self-supply of services.
Hence, in the absence of service provider and service recipient relationship and the services provided are in the nature of self-supply of services, the question of providing taxable service to any person by any other person does not arise"


Thus, there is no service tax if Apartment is constructed by builder himself. If he gives a contract of construction of residential complex to a sub-contractor having specified facilities; such contract will be subject to service tax at the rate of 12.24 % on 33 per cen t of value according to Service Tax Notification No 1/2006