Service tax on civil constructions

Hi Vivek,

I am afraid, you will still be providing construction services in the nature of 'works contract services' as 'Original Works', as I presume the total amount charged would not include the cost of land used for construction.

Even if the cost of land is covered under the contract value for you, this would not be eligible for non-taxability, as you are working under a contract and not on your own.

As per my understanding, the non-taxability provision that you are referring to, would only be applicable if the builder constructs the building on the land there after enters into a sale agreement with the buyer post receipt of a completion certificate form the competent authorities.

Lastly, not any one can issue a completion certificate for construction of a building. Just below the clause referred by you, there is definition of 'competent authority' prescribed.

Hi Vivek,

Law does is same for small and large builders/developers. Secondly, mere invoice or agreement would not determine the taxability. Meaning, if you have received advances from your customer, the taxability is triggered. So, I believe it is difficult to state that such transactions would not be taxable.