Real Estate India & Properties - Sell Buy Rent Commercial n Residential Property with India's Stunning B2C Property Portal sapphirelandbase.com
Sapphire Landbase
It is a big victory for Promoters and Builders Association of Pune and Lakhs of property purchasers in the country. On 23rd August, Service Tax Authority in its circular No.96/7/2007-ST dated 23/8/07 clarified that there will be no Service Tax applicable on builders or developers.
In its para 079.01/.23.08.07 The circular said “in a case where the builder, promoter, developer or any such person builds a residential complex, having more than 12 residential units, by engaging a contractor for construction of the said residential complex, the contractor in his capacity as a taxable service provider (to the builder / promoter / developer / any such person) shall be liable to pay service tax on the gross amount charged for the construction services under ‘construction of complex’ service [section 65(105)(zzzh)].”
The circular further said that “ 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 relationship does not exist,
(ii) services provided are in the nature of self-supply of services. 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. http://www.sapphirelandbase.com
About the Author
Sapphire Landbase
Tell others about
this page:
Comments? Questions? Email Here