Service tax query

Queries 520 views 1 replies

There is a proprietorship firm giving services of providing labour for construction of residential house.The other items such as cements , dust, bricks etc..are   directly paid & provided by the owner of the plot on which residential house construction is being carried out. there is no other payment made by the owner to the provider of labour.

Now my query 

                      1. Whether service tax is payable by the provider of labour.

                      2.Is there any exemption relating to the this case

                      3. Is there any tax planning that can be done to to avoid/reduce tax payament

 

Kindly reply..

 

 

Replies (1)

Hi,

No service tax payable by service provider as the service you specified is under the negative list of services on which service tax is exempt u/s 12/2012 dated 17.03.2012 as follows :

"

  1. Services by way of erection or construction of original works pertaining to,-

 

  1. airport, port or railways;
  2. single residential unit otherwise as a part of a residential complex;
  3. low- cost houses up to a carpet area of 60 square metres per house in a housing project approved by competent authority empowered under the ‘Scheme of Affordable Housing in Partnership’ framed by the Ministry of Housing and Urban Poverty Alleviation, Government of India;
  4. post- harvest storage infrastructure for agricultural produce including a cold storages for such purposes; or
  5. mechanised food grain handling system, machinery or equipment for units processing agricultural produce as food stuff excluding alcoholic beverages;

"

Provided the labour used for construction of residential house and not part of residential complex.

Thanks and Regards,

Manoj B. Gavali


CCI Pro

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