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Service tax on maintenance charges

Queries 4571 views 1 replies

 

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


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