Sevice Tax not applicable for Residential building
As per Hon. Delhi high court judgement -
The counter affidavit filed on behalf of the Respondents also affirms
the above Circular as clarifying that service tax was not applicable in
respect of construction/development by a developer/builder engaged in the
business of developing real estate for selling units to prospective buyers. It
is affirmed on behalf of the Respondents that the "Circular was issued
within the existing law because at that time, no service tax was applicable
on such services within the Finance Act, 1994. The same was specifically
inserted by way of amendment in the Finance Act, 2010". Thus, even
according to the Respondents, prior to the Finance Act, 2010 -by virtue of
which the impugned explanation to Section 65(105)(zzzh) and clause
(zzzzu) were introduced - service tax was not chargeable on
builders/developers who were engaged in construction of real estate
residential projects and selling residential units in those projects to
prospective buyers. Thus, unless the builder was rendering the service of construction of a complex simplicitor, no service tax was chargeable for
service covered under clause (zzzh) of Section 65(105) of the Act.
Still builders are taking service tax from the customers both for flat and PLC.
How to tackle it guidance reqested. more
The counter affidavit filed on behalf of the Respondents also affirms
the above Circular as clarifying that service tax was not applicable in
respect of construction/development by a developer/builder engaged in the
business of developing real estate for selling units to prospective buyers. It
is affirmed on behalf of the Respondents that the "Circular was issued
within the existing law because at that time, no service tax was applicable
on such services within the Finance Act, 1994. The same was specifically
inserted by way of amendment in the Finance Act, 2010". Thus, even
according to the Respondents, prior to the Finance Act, 2010 -by virtue of
which the impugned explanation to Section 65(105)(zzzh) and clause
(zzzzu) were introduced - service tax was not chargeable on
builders/developers who were engaged in construction of real estate
residential projects and selling residential units in those projects to
prospective buyers. Thus, unless the builder was rendering the service of construction of a complex simplicitor, no service tax was chargeable for
service covered under clause (zzzh) of Section 65(105) of the Act.
Still builders are taking service tax from the customers both for flat and PLC.
How to tackle it guidance reqested. more
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Mr. Kanti please clear if any wooden door frame manufacturer provide door frame after fixing the frame on his factory in Delhi and complete frame supplied to builder on residential project in Noida builder is charging service tax do you think this service tax he applicable for such supply of door frame fixing is not in our scope only supply of door frame is there more
Mar 24
whether the Hon'ble justice will pass any verdict to reverse the amount already paid to the builders for their residential flat?This will benefit a large no. of homebuyers, purchased flat 2010 onwards. more
Mar 23
Now that we have already paid service tax pl let me know the procedure for claiming the same.The builder has paid in lump sum and our name will not figure along with the tax paid details, so pl let me know if the service charges is required to be claimed from the govt by the builder/ association, what is the procedure and what documents are required. more
Mar 23
