Residance Construction

[DEEPAK SHARMA]

We are constructing a housing complex which belong to Power Grid Corporation of India for their staff.

there are 2 bed room set ground floor and first floor

3 bed room set ground floor and first floor

4 bed room set ground floor and first floor

only two floor/flat  in every section, including a common play ground parking

whether service tax is applicable   

[YAGAY andSUN]

Yes, service tax will be applicable since the definition of complex has been amended.

[CASeetharaman KC]

The earlier concept of a minimum of 12 residential units has been amended and service tax would therefore be applicable 

AI Summary

Service tax applicability on construction of residential complex affirmed after removal of minimum unit exemption provision. An amendment removed the prior minimum unit requirement for the definition of 'complex,' bringing construction of the described small multi unit residential complex within the scope of service tax on construction services; therefore construction for employer staff is taxable despite the smaller number of units.