(a) Construction of a complex , building , civil structure or a part thereof , including a complex or building intended for sale to a buyer etc are included in the ‘Declared Services’ category . However no abatement is provided for the service in notification 13/2012 –Service Tax dated 17th March 2012 or elsewhere. Does it mean that the construction of complex service covers only labour contracts and that construction contracts involving supply of material is covered by works contracts service ?
(b) The exemption of 12 dwelling units in construction complex services will be replaced by one single unit . Construction complex of more than one unit becomes taxable after passing of the Finance Bill . What will happen to construction in progress of 12 or less units but more than 1 unit ? What are the trasitional provisions.?
(c) Hither to construction of residential unit for personal use is not taxable . It appears this exemption is lost ? Single residential unit otherwise as part of residential complex only is exempt . So if 20 person joins together and purchases land and constructs a flat for their personal residence the exemption presently available is lost and service tax liability is attracted .If a society is formed exclusively for getting the flat constructed through a contractor whether the Society will have liability to pay service tax ? Whether the contractor also will have liability for payment of service tax ? These are debatable issues and clarification to be issued by the Board . Again how the construction in progress which had exemption will be taxed after the enactment of Finance Act ?
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