Residential Construction Service-15 bunglows

[Sumeet Tholle]

Dear Sir,

My query is for period FY 10-11.

One of my client constructed 15 bungalows only on one big plot.

Would this fall under definition of 'residential complex' and will applicable to Service Tax ?

or this will be treated as individual bunglows & hence no Service Tax applicable?

Pl. guide.

Waiting for your advice.

Thanks.

Sumeet C. Tholle, CA.

 

AI Summary

Clarification Sought on Service Tax for 15 Bungalows: Residential Complex or Exempt Individual Units? Regulatory Changes Considered. A client constructed 15 bungalows on a single plot during FY 10-11 and seeks clarification on whether this qualifies as a 'residential complex' subject to Service Tax or as individual bungalows exempt from it. Responses indicate that if the bungalows are treated as individual units with separate agreements, they might be exempt. However, constructing multiple bungalows on a single plot typically falls under taxable services. Changes in regulations since the cited CESTAT decision may affect the applicability of previous rulings. The consensus leans towards the transaction being taxable under Service Tax.