Service tax on religious work

Others 465 views 1 replies

Hi All,

I have a client who is in the business of Construction. He has started constructing residential homes (dharmshala) at the religious place. My question is that will this construction activity attract Service Tax?

Replies (1)

Dear D Shah,

Construction activity wiill be liable for service tax only if he is constructing the residential house on  contract basis i.e. if he has got contract for construction of that property. But if he is constructing own residential houses and thereafter  on completion of construction of property selling them to buyers. Then service tax will not be applicable.

But if he is doing work on contract basis then WCT (vat ) will also be applicable.

Regds


CCI Pro

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