Applicability of Service Tax where the entire work of construction is being carried out by the developer and builder themselves and the ready built flats are being sold.

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Applicability of Service Tax where the entire work of construction is being carried out by the developer and builder themselves and the ready built flats are being sold. - Commentaries / Editorials Dated:- 14-4-2008 - News - There was a wide confusion on applicability of service tax on the construction activity where the developer carry the entire activity of construction of complex themselves wi .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... thout engaging the contractor. The confusion widened like anything after a clarification issued by the DGST dated 16.2.2006 . However, later on CBEC has clarified the issue by issuing a circular No.96/7/2007-ST dated 23.8.2007 and by withdrawing its earlier circulars. Now the question arises, whether the circular no. 96/7/2007 is prospective in nature or retrospective in nature. Now CESTA .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... T has decided the issue as under: "If no other person is engaged for construction work and the builder/ promoter / developer / any such person undertakes construction work on his own without engaging the services of any other person, then in such cases, (i) service provider and service recipient relationships does not exist, (ii) services provided are in the nature of self-supply of servic .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... es. Hence, in the absence of service provider and service recipient relationship and the services provided are in the nature of self-supply of services, the question of providing taxable service to any person by any other person does not arise. Since the circular is by way of clarification of the law, we hold that it will apply retrospectively" However, the matter is remanded back for denov .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... o consideration . (For full text of judgment visit - 2008 -TMI - 3605 - CESTAT, NEW DELHI ) - News - Press release - PIB Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X