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TMI BlogClarification on applicability of service tax on real estate developers / builders – Regarding.X X X X Extracts X X X X X X X X Extracts X X X X ..... it Dated : August 1, 2006 Subject: Clarification on applicability of service tax on real estate developers / builders - Regarding. Please refer to your letter dated 21.06.06 on the above subject. 2. I have been directed to state the following relating to levy of service tax on "construction of complex" service falling under section 65(105)(zzzh) and "commercial or industrial constr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 65(105)(zzzh) of the Finance Act, 1994. If no other person is engaged for construction work and the builder / promoter / developer undertakes construction work on his own without engaging the services of any other person, then in such cases in the absence of service provider and service recipient relationship, the question of providing taxable service to any person by any other pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity is there for payment. Clarified vide F. No. B1/6/2005-TRU dated 27.07.05, that residential complex constructed by an individual, intended for personal use as residence and constructed by directly availing services of a construction service provider, is not liable to service tax. 4. Is payment of service tax a responsibility of service provider or of whom the service is p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Notification No. 1/2006-Service Tax dated 01.03.06 provides for levy of service tax on 33% of the gross amount charged for the services provided or to be provided, subject to fulfillment of the conditions specified in the said notification. Service tax is leviable on,-(i) 'commercial or industrial construction' service falling under section 65(105)(zzq) with effect from 10.09.04, and(i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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