CONSTRUCTION OF RESIDENTIAL QUARTERS UNDER POWER GRID

[DEEPAK SHARMA]

Dear Forum people,

On of the our client is working as contractor, they offered a contract form power grid corporation of india to construct the residential quarter (the word is not residential complex as per work contract deed), it is bring under your attention that whether the service tax is applicable on this contruction of residential quarter or exempt from the entire service tax.

AI Summary

Service tax applies to residential complex projects with over 12 units, even for Power Grid Corporation contracts. No exemption. A contractor working on a project for the Power Grid Corporation of India inquired about the applicability of service tax on constructing residential quarters. The query was whether this construction is subject to service tax or exempt. The response clarified that if the project qualifies as a 'works contract' under the category of 'Residential Complex'-defined as a complex with more than 12 units sharing common facilities-then service tax is applicable. There is no exemption for such contracts, even if executed for entities like the Power Grid Corporation of India.