Service Tax on Construction of Complex Service- Residential

[Sumeet Tholle]

Dear All,

One of the my client is builder having name of the firm 'A Construction'.

At one Survey No., he constructed one building having 12 residential flats and 4 shops. How Service Tax provision applicable?. 

Superintendent demanding Service Tax on all 16 (12 flats +4 shops) units and I am of the opinion that , on 12 residential units Service Tax Not payable under Residential Construction Service but on 4 shops Service Tax payable under Commercial Construction Service.

At another location, my client constructed building having 14 flats, so Superintendent is of opinion that Service Tax to be payable on all (16 + 14) units.

Kindly ignore completion related provisions.

Pl. guide.

Thanks

 

[YAGAY andSUN]

Kindly check in details,  the taxable service 'Construction of residential complex' . 

AI Summary

Construction of residential complex vs commercial construction: classify each unit's nature to determine service tax applicability. The query concerns tax treatment of a mixed-use building with residential flats and shops. The legal distinction is that Construction of Residential Complex applies to residential units and is treated differently from Commercial Construction Service, which covers shops and other commercial units. Taxability should be determined by classifying each unit according to its nature within the project, and where multiple projects exist, by reference to the facts and classification applicable to each project rather than aggregate counting; completion provisions are excluded.