Liability of service tax - construction of residential complex

[DINESH MITTAL]

'A' construt houses for Ltd. Co., which was used by the company for given on rent to their employees. Whether the 'A' i.e. contractor is liable for service tax under construction of residential complex or not. Whether is liable for service tax under work contract service or not.

[Dinesh Gupta]

Where the nature of construction is residential house, service tax is attracted. It is immaterial that who is getting these house constructed. The nature of construction is to be determined first.

AI Summary

Construction of residential complex attracts service tax regardless of recipient, focusing on the nature of the construction. Service tax is attracted where the nature of construction is residential house; the identity of the person for whom the houses are constructed is immaterial. When a contractor builds residential accommodation for a company to provide to employees, the decisive inquiry is the nature of the construction and whether it falls within construction of a residential complex, which determines the contractor's service tax liability.