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.

AI Summary

Water Tank and Sewerage Construction: Taxable as Residential Complex Work or Exempt Under Works Contract? Clarification Provided. The discussion addresses whether the construction of a water tank and sewerage in a colony is subject to service tax under the construction of a residential complex or as a works contract. The response clarifies that such construction is taxable if it is part of a residential complex. However, if it is not associated with a residential complex and is conducted on behalf of a municipal corporation or local development authorities, it may not be taxable, as it could be considered non-residential or non-commercial work. The determination depends on the true nature of the construction.