Whether repair/renovation of a flat is taxable

There are two aspects to the question:

(i) Whether it is non-taxable for the reason that it is not repair of the complex but of a single flat?

(ii) Whether it is non-taxable for the reason that the flat is for personal use of the service receipient.

It appears to me that the transaction would be non-taxable on the second ground given above.

'Construction of complex' means construction of new residential complex or a part therof. Repair/ renovation is covered by the definition as repair, alteration, renovation.. in relation to residential complex. It appears to me that 'part of residential complex' is also a residential complex.

As regards 'personal use' we may note that:

a. Construction by a person directly engaging any other person ... intended for personal use is not taxable.

b. Repair is covered within the words 'construction of complex'.

c. Therefore, repair/ renovation of a flat would not be taxable.

I would request other members to give their inputs on the issue.

Do other members hold the same view? In that case, pls see the following:

1. It was viewed that when a builder/ developer enters into agreement with a prospective buyer for construction and sale of a flat, the builder/ developer was providing a service. The current budget says that if the payment is made in advance, it would be deemed that the builder/ developer is providing service.

2. It would tantamount to directly engage the builder/ developer by such individual buyer for construction. Therefore, the activity should be covered by the exclusion clause and no service tax should be payable.

Kindly comment.

The fact that the flat was for personal use means that the original - complex was excluded in the defintion itslef.