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

 

AI Summary

Builder Challenges Service Tax on Residential Flats; Seeks Clarity on Taxable Service Category for Construction Projects A client, a builder under the firm 'A Construction,' seeks clarification on the applicability of Service Tax for a project comprising 12 residential flats and 4 shops. The Superintendent demands Service Tax on all 16 units, while the client believes it applies only to the 4 commercial shops, not the residential flats. At another site with 14 flats, the Superintendent insists on taxing all 30 units combined. The client requests guidance, disregarding completion-related provisions. A respondent suggests reviewing the taxable service category for 'Construction of residential complex.'