Indian Real Estate Forum - www.indianrealestateforum.com - View Single Post - Service Tax on Under Construction Flat booking

cyadav · 26-08-10

Quote:

Originally Posted by ajoshi565

One important point in the discussion on Service Tax: (If & when it becomes payable):
The Service Tax is payable only for a "Residential Complex" - A complex being defined (in CBEC Notification) as Building with more than 12 residential units. So - incase you are buying a flat in a building with 12 or less flats - NO SERVICE TAX IS PAYABLE? Is this correct?

Can any senior folks can throw light on same.

here are relevent sections (Source-http://www.servicetax.gov.in/st-actmainpg.htm)

65. Definitions (30a)
“construction of complex” means —
construction of a new residential complex or a (a) part thereof; or completion and finishing services in relation (b) to residential complex such as glazing, plastering, painting, floor and wall tiling, wall covering and wall papering, wood and metal joinery and carpentry, fencing and railing, construction of swimming pools, acoustic applications or fittings and other similar services; or repair, alteration, renovation or restoration (c) of, or similar services in relation to, residential complex

and
(91a)
“residential complex” means any complex comprising of—
(i) a building or buildings, having more than twelve residential units;
(ii) a common area; and
(iii) any one or more of facilities or services such as park, lift, parking space, community hall, common water supply or effluent treatment system, located within a premises and the layout of such premises is approved by an authority under any law for the time being in force, but does not include a complex which is constructed by a person directly engaging any other person for designing or planning of the layout, and the construction of such complex is intended for personal use as residence by such person.
Explanation. — For the removal of doubts, it is hereby declared that for the purposes of this clause, —
(a) “personal use” includes permitting the complex for use as residence by another person on rent or without consideration;
(b) “residential unit” means a single house or a single apartment intended for use as a place of residence;