SERVICE TAX ON RESIDENTIAL QUARTERS

[NANDKUMAR SAGWEKAR]

DEAR ALL MEMBERS

WHETHER SERVICE TAX IS LIABLE TO PAID ON FOLLOWING ACTIVITIES .

1. SERVICE PROVIDER UNDER TAKE CONSTRUCTION OF RESIDENTIAL QUARTERS / FLATS FOR AN

    EDUCATION  TRUST WHO PROPOSE TO IMPART EDUCTION TO STUDENETS OF DEGREE COLLEGE. THE

    SAID RESIDENTIAL ACCOMODATION WILL BE USED AS A RESIDENCE BY THE TEACHERS , STUDENTS

   AND OTHER STAFF OF THE EDUCATION TRUST. THESE FLAT WILL NOT BE FOR SELLING PURPOSE.

   THE NO. OF UNITS ARE 82 IN FOUR BUILDING HAVING COMMON AREA.

 

     THANKS

     A M SHEMBEKAR

    CELL 9421187122

AI Summary

Service Tax Applicability on Education Trust's Residential Quarters: Exemption Possible if Trust Owns Land and Constructs for Personal Use. A query was raised regarding the applicability of service tax on the construction of residential quarters by an education trust for its staff and students. The discussion involved multiple participants, with differing views on whether the service tax is applicable. One participant noted a decision by the Chennai Commissionerate exempting such activities, while another mentioned the exclusion clause in the definition of 'Residential Complex' as per CBEC clarification. It was highlighted that if the trust owns the land and constructs for personal use, it may be exempt. However, if constructed under a mutual agreement on third-party land, it might be taxable. The trust owns the land and supplies materials, contracting only for labor.