Real Estate India: Who if anyone is liable for Service tax under construction of complex service?
Question asked by Chetan from Dallas, Texas: Whether Service tax is liable under construction of complex service [section 65(zzzh)] on builder, promoter, developer or any such person— (a) Who gets the complex built by engaging the service of a separate contractor, and (b) Who builds the residential complex on his own by employing direct labour? Vatsala Answers: Clarification a) 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) b) If no other person is engaged for construction work and the builder/promoter/developer/any such person undertakes construction works on h...