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March 2009

Service Tax on Builders.

By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Tarun Ghia, Nimesh Dedhia, Vijay Kewalramani
Chartered Accountants
Reading Time 1 mins
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Part B : INDIRECT TAXES


SERVICE TAX UPDATE

42 Service Tax on Builders.

 

Circular No. 108/02/2009-ST, dated 29-1-2009 :

A developer/builder/promoter selling a dwelling unit in a
residential complex at any stage of construction or even prior to that and
providing services in connection with construction of residential complex till
the execution of sale deed would be in the nature of ‘self-service’ and
consequently would not attract service tax. All pending cases to be disposed of
accordingly with the exception for decision by the Advance Ruling Authority in a
specific case.

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