TMI BlogSERVICE TAX ON RESIDENTIAL QUARTERSX X X X Extracts X X X X X X X X Extracts X X X X ..... DEAR ALL MEMBERS WHETHER SERVICE TAX IS LIABLE TO PAID ON FOLLOWING ACTIVITIES . 1. SERVICE PROVIDER UNDER TAKE CONSTRUCTION OF RESIDENTIAL QUARTERS / FLATS FOR AN EDUCATION TRUST WHO PROPOSE TO IMPART EDUCTION TO STUDENETS OF DEGREE COLLEGE. THE SAID RESIDENTIAL ACCOMODATION WILL BE USED AS A RESIDENCE BY THE TEACHERS , STUDENTS AND OTHER STAFF OF THE EDUCATION TRUST. THESE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FLAT WILL NOT BE FOR SELLING PURPOSE. THE NO. OF UNITS ARE 82 IN FOUR BUILDING HAVING COMMON AREA. THANKS A M SHEMBEKAR CELL 9421187122 - Reply By Raja Rajan - The Reply = Service Tax is exempted as per recent Chennai Commissioinerate's decision. - Reply By Radha Arun - The Reply = Prima facie it is taxable as construction of residential complex. Perhaps Mr Rajan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will amplify his remarks on Chennai Commissionerate decision - on what basis is it exempted? - Reply By Raja Rajan - The Reply = Grounds are identical as mentioned by Mr. A M Shembekar. Thanks - Reply By Radha Arun - The Reply = Thanks Mr Rajan. Could you pl tell us the reasoning? - Reply By Balasubramanian Natarajan - The Reply = Dear It is covered by the Excklsion clause in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Definition of 'Residential Complex. Pl ref calrification from CBEC F.No. 331/16/2010-TRU dated 24.05.2010 balasubramanian n Trichy - Reply By ANAND SHEMBEKAR - The Reply = Thank you Friends for giving me a valuable reply , - Reply By vijay kumar - The Reply = Dear Sir, you have not mentioned whether the said Trust is getting the complex constructed on its own land. If that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the case, the construction will be for personal use of the trust for its staff etc. and hence falls under the exclusion clause of the definition of "Residential complex" in terms of Section 65(91a) of the Finance Act 1994 and accordingly there would be no taxability. Otherwise, if you have undertaken the construction work on a land belonging to you or a third person, under a mutual or tripar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tite agreement, then the activity amounts to taxable service notwithstanding the fact that the end user is an Educational Trust since no such exemption is provided in the Finance Act for such users. In the latter case, it is also required to be seen whether it is a case of outright sale to the Trust after completion or construction linked payment since taxability arises only in the latter case. Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard Circulars dt.1.8.2006 and 29.1.2009 would be relevant in your case. In case u need further clarification, please provide the above details. Regards Vijay Kumar. - Reply By ANAND SHEMBEKAR - The Reply = Dear Sir Shri. Vijay Kumar First of all thank you very much for detail reply. The Land is owned by the Education trust and they are constructing the residential quarters for their sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ff and hostel for student. They have awarded the contract only for labour work to a Contactor @ Rs. 216 per sq. feet of built up area. The material Cement , Sand , Steel , geru , water , electricity is provided by Education trust. The contractor has to do only labour job for construction of building with the material supplied by ED. Trust. Thanks ANAND SHEMBEKAR - SERVICE TAX ON RESID ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ENTIAL QUARTERS - Query Started By: - ANAND SHEMBEKAR Dated:- 21-10-2011 Service Tax - Got 8 Replies - Service Tax - Discussion Forum - Knowledge Sharing, reply post by an expert, personal opinion Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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