services tax on construction services

In my opinion, the explanation has been inserted now in order to expand the scope of the service & hence will be applicable only after the passing of the budget.

The consideration paid for the service already rendered before it become taxable can not be logically subjected to tax. So only the amount which is paid relating to the service rendered after the passing of the Budget, in my opinion will be subjected to tax.

Further, the residential complex in which such flat has been purchased must have more than 12 flats, then only such service will become taxable as it is not a new service but an explanation to the already existing service.

Going further, the abatement of 66% may also be available for such service vide Notification No. 1/2006 Item No. 10.