Taxability of Contruction of water tank

[Ashok Goyal]

Weather construction of water tank (Pani ki Tanki), sewerage in the colony is taxable under construction of residential complex or taxable under works contract.

[Rama Krishana]

Yes, it is taxable as long it is a part of related to residential complex. But if it is not a part of residential complex or related thereto, it may not be taxable since it may become a non-residential contract work and non-commercial too if done on behalf of Municipal corporation or local development authorities. It is the true nature which would help to decide the matter.

AI Summary

Taxability of construction: works forming part of residential complexes are taxable while standalone civic works may not be. Construction of a water tank or sewerage is taxable when it forms part of or is related to a residential complex; if the work is standalone civic development undertaken for municipal or local authorities it may not be taxable. The true nature of the contract and its connection to residential construction determine taxability.