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Service Tax on Construction of residential complex

CA. Rashi Goyal (Chartered Accountant) (512 Points)

24 May 2010

One of our client is engaged in construction of residential complexes. As the service tax has been made applicable on construction of any advance is taken before the completion of complex.

Now my query is whether the client is required to apply for service tax registeration.

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7 Replies

CA,CS, ICWA Inter MANOJ KEDIA (Working With Educomp) (99 Points)
Replied 24 May 2010

if his total receipt likely to be more than 9 lac durin during the year then requried

daya shankar singh (CA ,CS) (629 Points)
Replied 25 May 2010

Yaa, I agree with Mr. kedia

Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs 9lac shall make an application to the jurisdictional Superintendent of Central Excise in such form as may be specified, by notification, by the Board, for registration within a period of thirty days of exceeding the aggregate value of taxable service of RS 9lac

Sunali (Learner) (1317 Points)
Replied 25 May 2010

Originally posted by : daya shankar singh
	Yaa, I agree with Mr. kedia Any provider of taxable service whose aggregate value of taxable service in a financial year exceeds Rs 9lac shall make an application to the jurisdictional Superintendent of Central Excise in such form as may be specified, by notification, by the Board, for registration within a period of thirty days of exceeding the aggregate value of taxable service of RS 9lac

Perfect..!!

CA. Rashi Goyal (Chartered Accountant) (512 Points)
Replied 25 May 2010

Thanks for the reply, could you please let me know the relevant date of applicability of service tax in our case as this has been bought into tax bracket in the latest budget.

Sanjay (Student) (23 Points)
Replied 26 May 2010

From 08/05/2010, there is no tax on construction of residential complex if the buyer makes any payment before issue of occupation certificate. This is because, as per the amendment in current budget, it is deemed that the buyer has engaged the builder for constructing a unit for personal use of the buyer.

Pls correct me if I am wrong.

chandra sekaran (chartered accountant) (44 Points)
Replied 31 May 2010

Dear Sanjay, you are right. As a matter of fact, the construction of complex service is not taxable from the inception provided the constrution of such complex is intended for personal use. Further the amendment brought in by the current year budget has no impact where the constructioin of complex intended for persoanl use by the recipient of service.

Madhukar N Hiregange (Chartered Accountant) (38934 Points)
Replied 02 June 2010

The point made by Chandra sekaran on person use wouldbe relevant as that has not been amended. Lots of demands/ litigation expected with the budget amanedments.