TaxTMI 
TaxTMI 
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.
Service tax on Pucca labour quater construction
06 Feb 2017 
6 Replies 
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Service tax on construction services: paid construction and handover of labour accommodation is taxable when consideration is received.
Construction of pucca labour quarters paid for by the tea company constitutes a declared service under Section 66E(b) and is chargeable to service tax. Liability arises because the provider constructs and hands over accommodation to the service receiver for labour use, with consideration received, distinguishing the transaction from exempt personal residential rent. (AI Summary)
Construction of pucca labour quarters paid for by the tea company constitutes a declared service under Section 66E(b) and is chargeable to service tax. Liability arises because the provider constructs and hands over accommodation to the service receiver for labour use, with consideration received, distinguishing the transaction from exempt personal residential rent. (AI Summary)