Service Tax on Construction Services

[CABALRAM PANDEY]

Dear Experts,

Greetings of the Day!

I would like to submit her some situation for your kind opinion.

1. A contractor is engaged for building residential complex by a manufacturing co. These residential complexes shall be used by the staff of the company. Whether contractor charge service tax on bills raised for services provided by him to manufacturing company.

 

2.A contractor is engaged for building as hostel & institution building by a private institution giving BBA, MBA. The hostel is solely meant for students of such institution. Whether contractor charge service tax on bills raised for services provided by him to Private institution.

If your answer is no, please quote the particular section, notification and decided case laws.

 

Thanks

CA Balram

 

AI Summary

Service Tax Applies to Construction of Residential Complexes and Hostels; Not on Negative List, Clarified as Works Contracts. A contractor engaged in constructing residential complexes for a manufacturing company and hostels for a private institution inquired about the applicability of service tax on these services. Experts responded affirmatively, stating that service tax is applicable as these services do not fall under the negative list. The contractor sought specific legal references and case laws, as the service receiver claimed exemption due to the buildings being for personal use. It was clarified that such construction services fall under works contracts, with varying service tax liabilities depending on the contractor's status and the nature of the work.