Dear Experts,
If developer purchase a land on which he can build 15 low cost houses upto 8 Lakh rupees each. Now he is planning to enter into land sale agreement first and then he will enter into construction agreement with different house purchaser. (1) Can he get service tax exemption of a single residence house designed for use for a single family under Service Tax rules ? and (2) if purchaser is taking subsidy approved from the bank under Pradhan Mantri Awas Yojana at the time of taking loan. in this case can developer get service tax exemption ??
Thank you
Developer Seeks Clarity on Service Tax Exemption for Low-Cost Housing Under Pradhan Mantri Awas Yojana; Conflicting Views Arise A developer inquired about service tax exemptions for constructing 15 low-cost houses, each costing up to 8 lakh rupees, under separate agreements for land sale and construction. The query focused on whether exemptions apply for single-family residences and if subsidies under the Pradhan Mantri Awas Yojana impact eligibility. Responses varied, with one expert stating no exemption is available, while another referenced a notification that grants exemptions for specific housing projects under the scheme. The developer sought clarification on whether constructing multiple houses for different families qualifies as single-family units for exemption purposes. (AI Summary)
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