Service tax on construction

[Asked by Guest]

Sir,

I have purchased a plot and then made agreement for construction on it. Location Bhopal rs.2950000.

Now builder is demanding service tax rs.1.12 lakh.

Please guide with proper rules that service tax will applicable or not.

Because I have read in service tax article that service tax is not applicable on construction of single unit duplex or bungalow.

[KASTURI SETHI]

Extract of Notification No.12/17-Central Tax Rate

11

Heading 9954

Services by way of pure labour contracts of construction, erection, commissioning, or installation of original works pertaining to a single residential unit otherwise than as a part of a residential complex.

Nil

Nil

[YAGAY and SUN]

We endorse the view of our Expert "Kasturi Sir".

AI Summary

Service tax exemption for single residential unit construction: pure labour contracts for standalone homes are nil-rated under notification.
Pure labour contracts for construction, erection, commissioning or installation of original works pertaining to a single residential unit, when undertaken otherwise than as part of a residential complex, are nil-rated for service tax under Notification No.12/17 (Heading 9954).