classification of service

[hubert fernandes]

A builder who constructs and sell apartements is covered under complex construction service wef from july 2010.The builder herein pays service tax on the sale considertaion under complex construction.In the sale agrt wherein in the event the purchaser excersises the option for some value additions(all such value additions can be classified under completion and finishing servces and therefore no abatement) whether such value additions would be covered under complex construction or under preferential location service.

secondly if an flat is sold after completion certificate and some extrra works are carried in such flat whether such extra works would classify under complex construction and would be exempted for flat being sold post completion or whether it woul be taxed under works contract or under prefential location

[Surender Gupta]

Completion and finished services shall be covered uner the original category of services i.e. construction of complex services and abatement can be availed.

Regarding, extra work, after sale and completion certificate, it is to be seen who is doing such extra work and what is the nature. I.e. if the same builder is doing the same, service tax is required to be paid.

AI Summary

Complex construction service: finishing works fall under complex construction and get abatement; extra post-completion works by the builder attract tax. Value-added finishing and completion activities connected to the sale of apartments are treated as Completion and Finishing Services within Complex Construction Service and qualify for abatement; post-completion extra works are taxable if performed by the original builder, while classification otherwise depends on the provider and nature of the work (possible Works Contract or Preferential Location Service).