Service tax on school building construction

Service tax is applicable for construction of school building and residential bulidings for staff.

Notification no: 25/2012 can be referred for exemptions.

However, sl. no. 13(c) of the above referred notification exempts construction services rendered to an entity registered under 12AA of Income tax act (i.e., Trust), provided the building is meant predominantly for religious use by general public.

In most probabilities, your case will not fit into the above clause, hence service tax will be applicable.

Regards,

CA. Kanagaraj R

Dear Krishna,

If you are constructing such structures for the government, a local authority or a governmental authority, you are not required to pay service tax. If you are constructing for others, you are required to pay tax.