There is a religious trust which gets residential units (around 100 units) / kitchens / dining halls / toilets etc. constructed for the stay of its disciples / followers on the land owned by the trust, by hiring local contractors/builders. The contractors / builders are hired for the sole purpose of constructing the structures and are paid through cheques/cash. No land/building/structures are transferred to such contractors/builders. The residential units / kitchens / dining halls / toilets etc. so constructed are not intended to be sold or transferred to anyone & would remain the absolute property of the trust.
Would the trust be liable to pay service tax on the construction of the abovementioned structures? If yes, pls. state the relevant rule / clause which brings the above construction under the preview of service tax. If no, pls. state the reason.
Thanks in advance.
CAclubindia
