service tax on builders

[parasa venkata rao]

whether exemption is available for below 12 apartments

[Sucheta Agrawal]

Dear Mr. Rao,

you forget to paste the name of 12 apartments

 

[Sucheta Agrawal]

Sorry dear Mr. Rao,

actually there was some mistake on my part to understand your query. Now i will try to reply soon  

[Sucheta Agrawal]

Dear Mr. Rao,

if below 12 apartments constructed for residential purpose then exempt from service tax view. it is specifically mentioned in -

Meaning of Residential complex - 65(91a)

"residential complex" means any complex comprising of—

(i) a building or buildings, having more than twelve residential units;

(ii) a common area; and

( iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.

 

 

AI Summary

Residential complex definition determines service tax exemption for smaller residential developments not meeting statutory unit and layout requirements.
Service tax exemption applies where a building does not meet the statutory definition of a residential complex. That definition requires more than twelve residential units, common areas, specified shared facilities and an authority approved layout; complexes for personal use or without approved layout are excluded. Constructions of fewer units intended for residential use therefore fall outside the residential complex definition and are treated as exempt from the service tax applicable to residential complexes.