SERVICE TAX

[shamji bhanushali]

MY CLIENT ASA ABUILDER HE WANT TO CONSTRUCT ONE BUILDING AND HI WANT SOME FLAT TO HIS STAFF AND OTHER FOR HIS FAMILY. IS SERVICE TAX CHARGEBLE FOR THIS?

[bhart b sharma]

there is a concept of "service to self". after the introduction of negative list of services, 'construction of complex' service is covered under 'Works Contract' service.

in your particular case, what is the contract about? terms of contract/agreement are important to decide the issue

[KASTURI SETHI]

Exemption has been withdrawn vide Notification No.6/2015-ST dated 1.3.2015 (effective from 1.4.2015). Hence ST is leviable from 1.4.2015.

AI Summary

Service tax on construction now leviable where works contract treatment applies and exemption has been withdrawn. Service tax is leviable on construction activities that qualify as works contract services and on which a prior exemption has been withdrawn. The classification depends on the contract terms and whether the construction constitutes service to self or supply to a third party; these factual and contractual elements determine whether service tax applies under the revised statutory position.