Nityanand (Proprietor) (33 Points)
22 March 2010Hi,
Can anyone let me know if
a). there is service tax applicable on land owned by X and construction is undertaken by X himself.
b). What would happen if X employs labour contractors for supply of labour and other things are handled by X only in the construction.
Kindly reply
Madhukar N Hiregange
(Chartered Accountant)
(38934 Points)
Replied 22 March 2010
| Originally posted by : Nityanand | ||
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Dear Sir,
There is no service tax applicable on land. Assuming apartment complex construction as per the amendment it makes no differecne. However the fact that the complex service is not covered where there is personal use is to be examined. Where labour contractros involved they would be liable to pay the ST.
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Chintan Vasa
(CA Final Student M.Com)
(1241 Points)
Replied 22 March 2010
As per my opinion:
a) In your given query X has its own land & he himself is constructing the building, which means that he himself is providing service to himself. For taxable event to arise there must be at least 2 distinct parties. In your query service receiver & service provider are same. Hence no liability for Service Tax
b) Here when X is employing labour contractors means that he is availing the service of contract labourer. In other words he is the receipient of service. Hence again he is not liable to service tax.
ragesh
(EA 2 VP Mktg)
(24 Points)
Replied 22 March 2010
I have booked a flat in
Pl help
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