Service tax on Pucca labour quater construction

[ramkishore gupta]

Please let me know the impact of service tax on Payment received for Construction or renovation done for Pucca labour quarters not meant for sale by a tea industries.

AI Summary

Service tax applies to payments for building labor quarters for a tea company under Section 66 E (b) of the Finance Act, 1994. A query was raised regarding the applicability of service tax on payments received for constructing or renovating pucca labor quarters for a tea company, with the quarters not intended for sale. Responses indicated that such construction falls under the scope of service tax as per Section 66 E (b) of the Finance Act, 1994, since the quarters are built for accommodating laborers and not rented out for personal use. The consensus among respondents was that the service provider is liable to pay service tax due to the presence of a service provider, service receiver, and consideration.