Applicability of Service Tax - on construction of villa for personal use

[Sidney Gomes]

Dear Sirs,

I have purchased a plot in Shahpur Maharashtra and am constructing a small bungalow for my (family) personal use. The construction is carried out by the land developer.

Would like to get a clarification about registration. Can I register the plot only OR do I have to register the plot along with the completed bungalow.

What are the implications of stamp duty costs and service tax costs (if any).

Will there be any other taxes involved.

Thanks

[CSSANJAY MALHOTRA]

Dear Mr. Gomes,

Sr. No. 14(b) of Service Tax Notification No. 25/2012-ST dated 20.06.12 provides for Exemption on Construction of One Self Residential House as below:

14. Services by way of construction, erection, commissioning, or installation of original works pertaining to,-

(b) a single residential unit otherwise than as a part of a residential complex;

AI Summary

Exemption for single residential construction: standalone houses built for personal use are not liable to service tax under notification. Services involving construction, erection, commissioning or installation of original works for a single residential unit otherwise than as part of a residential complex are exempt from service tax under the notification; the reply applies that exemption to developer-built standalone homes for personal use and does not address registration or stamp duty implications.