Service Tax Liability on self made residential apartment, Service Tax

[Mehul Pandya]

Sir,

I have purchased plot and started construction to prepare apartment for residential use. I will purchase all the required material and appoint labour on salary basis. I will pay them salary on daily basis by cash. Apartment will contain 15 flats. It will be completed after one and half year.

I have neither entered into any kind of sale agreement/contract to anybody nor received any advance from anybody. I intend to sell this flats after completion of all type of work and when it will become ready to use at the prevailing market rate at that time.

My query is in this case service tax is applicable or not. if yes when i have to take registration  under which category and how to calculate service tax.

Thank you

Posts / Replies

[Madhukar N Hiregange]

No liability under either VAT or Service tax in this case as long as it is genuine and evidence available.