Developer

[Chandravijay Shah]

Dear Sir For new Service Tax Registration of a Developer, it should apply for which kinds of services? Say, for (1) Real Estate (2) Additional Facilities. Which clauses of Finance Act, 1994 are applicable? “construction services” has more than one following categories: 65(105)(zzq) Commercial or Industrial Construction Service wef 10-09-2004 65(105)(zzzh) Construction of Complex wef 16-06-2005 65(105)(zzzza) Works contract wef 01-06-2007 65(105)(zzzzu) Preferential Location - Special service provided by a builder etc, to the prospective tax buyers such as providing preferential location or external or internal development of complexes on extra charges wef 01-07-2010 Which of the above services should be included in ST-1 ?

[NANDKUMAR SAGWEKAR]

Dear Mr. Chandravijay Shah For new service tax registration , person has to classify the service as per section 65A , you can apply for all services in single registration.It is better to take registration for zzq,zzzh,zzzza,zzzzu .Each contract is separate according to the nature of work you can classify the service and pay the service tax accordingly. ANAND SHEMBEAKR CELL 9209904370 65A. 1[Classification of taxable services] (1) For the purposes of this Chapter, classification of taxable services shall be determined according to the terms of the sub-clauses of clause (105) of section 65. (2) When for any reason, a taxable service is, prima facie, classifiable under two or more sub-clauses of clause (105) of section 65, classification shall be effected as follows:— (a) the sub-clause which provides the most specific description shall be preferred to sub-clauses providing a more general description; (b) composite services consisting of a combination of different services which cannot be classified in the manner specified in clause (a), shall be classified as if they consisted of a service which gives them their essential

AI Summary

Developer Advised to Register Under Multiple Categories for Service Tax per Section 65A of Finance Act 1994 A developer inquired about the appropriate service tax registration for new services under the Finance Act, 1994, specifically for real estate and additional facilities. The query highlighted various construction service categories, including commercial or industrial construction, construction of complex, works contract, and preferential location services. The response advised registering under all relevant categories (zzq, zzzh, zzzza, zzzzu) in a single registration, as per section 65A, which outlines the classification of taxable services. The classification should be based on the specific nature of each contract, ensuring the correct service tax is applied accordingly.