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
ARTICLESHIP 07 November 2026
Article Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
Featured 07 November 2026
Paid Assisstant

DPV & Associates

Chennai

CA Inter

View Details
Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details
Company
02 November 2026
Audit Executive

SRJP & Co LLP

Kochi

CA Inter

View Details
Company
24 October 2026
CA Industrial Trainee

Fytomax Nutrition Private Limited

Aurangabad

CA Inter

View Details
Company
12 November 2026
Auditor

Oz Taxation

Vijayawada

Graduate (Any)

View Details
Company
ARTICLESHIP 14 November 2026
Articleship Assistant

B Thejas and Associates

Bengaluru

CA Foundation

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details