Service Tax Liability on self made residential apartment

[Mehul Pandya]

Sir,

I have purchased plot and started construction to prepare apartment for residential use. I will purchase all the required material and appoint labour on salary basis. I will pay them salary on daily basis by cash. Apartment will contain 15 flats. It will be completed after one and half year.

I have neither entered into any kind of sale agreement/contract to anybody nor received any advance from anybody. I intend to sell this flats after completion of all type of work and when it will become ready to use at the prevailing market rate at that time.

My query is in this case service tax is applicable or not. if yes when i have to take registration  under which category and how to calculate service tax.

Thank you

AI Summary

No Service Tax or VAT on Self-Managed Construction of 15-Flat Residential Apartment Without Pre-Sale Agreements An individual inquired about the applicability of service tax on constructing a residential apartment with 15 flats, where they have purchased a plot and are managing construction independently without any pre-sale agreements or advances. The individual plans to sell the flats after completion. A response indicated that there is no liability for VAT or service tax in this scenario, provided the situation is genuine and supported by evidence.