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

Taxability of residential construction: whether multiple bungalows on one plot attract service tax depends on contract structure and transfer mechanism.
Whether construction of multiple dwellings on a single plot attracts service tax depends on whether the activity is a construction of a residential complex or sale of independent residential units; critical factors are independent agreements with purchasers, the contractual allocation of land and building rights, the form of registration and stamp duty payment, and whether the transaction constitutes a service to oneself or a service provided to others.