Service tax on maintenance charges

 

Dear Sir/madam,
 
We as a Builder are collecting Maintenance Charges from the customers. For e.g. we are collecting Rs. 7700/- quarterly (which includes Municipal taxes, water charges, electricity charges, Housekeeping charges, Lift maintenance, Lift man Salary and Electricity charges) from each flat owner. However all the above are also incurred as expenses for the related building, i.e. electricity bill is paid by us and reimbursement of same is taken from customers. whereas reimbursement amount is comparatively greater than what we charge. hence, in this regard, pls tell us service tax applicability if Maintenance charges is recovered by Builder and applicability if same is recovered by Society.
 
Thanks and Regards,
 
Dev Pawar
Replies (1)

If the amount of collection exceeds the Basic Exemption Limit, Service Tax is applicable, the same applies even to the CHS, if the monthly contribution from an member exceeds Rs. 3,000/- per month.

https://www.chsguru.com/2012/01/service-tax-application-on-flat-sale.html

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
18 August 2026
CA Semi Qualifies

Goyanka and Associates

New Delhi

CA Inter

View Details
Company
19 August 2026
Chartered Accountant - Financial Consolidation & Reporting

Synergy Keystone

Mumbai

CA

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
09 September 2026
Semi Qualified CA / CA Inter - 2 Groups Cleared

Getmyca Consultant Pvt Ltd

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 17 August 2026
Article Assistant

K R Kiran Kumar & Associates

Bengaluru

CA Inter

View Details
Company
17 August 2026
Chartered Accountant with US GAAP Experience

Austin Med Solutions Pvt Ltd

Bengaluru

CA

View Details
Company
13 August 2026
Chartered Accountant (FP&A)

Client of Trellis Consulting

Gurgaon

CA

View Details
Company
ARTICLESHIP 04 September 2026
Accounts Executive

Hema Yashwanth & Associates

Chennai

B.Com

View Details