Log in Register

Login to your account

Username *
Password *
Remember Me

Create an account

Fields marked with an asterisk (*) are required.
Name *
Username *
Password *
Verify password *
Email *
Verify email *
Captcha *
View more blog entries

Consult Construction

Consult Us For Construction

Case law on taxability of Residential Complex made for managerial staff

Posted by on in Service Tax
  • Font size: Larger Smaller
  • Hits: 435
  • Subscribe to this entry
  • Print
  • Report this post



Service Tax - Construction of Residential Complex Service – assessee entered into agreement for construction of building intended for making available residential accommodation for the managerial staff of M/s. ITC Ltd – Whether the Tribunal erred in coming to the conclusion that the “Residential Complex” constructed by the assessee falls within the meaning of “personal use” under Section 65(91a) of the Finance Act, 1994 and therefore not liable to pay service tax.


HELD - When the sub-Contractor has duly discharged the obligations to pay the Service tax in the present Contract, we are at a loss to understand how the Revenue could again demand the Service Tax from the Respondent-Principal Contractor or the Developer, who did not undertake any construction activity – further, the learned Tribunal was perfectly justified and correct in applying the Circular dated 24/05/2010 and holding that if the Government of India Department could be treated as using the ‘Residential Complex’ constructed by NBCC for its ‘personal use’, how another Corporate body could be denied the benefit of that type of user of ‘Residential Complex’ to be occupied by its Managerial Staff.


The law does not envisage any such distinction among the Private Sector Corporate Entities and the Departments of Government or Government Companies or Undertakings - The case of Revenue have emanated on a misconceived Audit objection raised by the internal Auditors of the Department - the Respondent was not liable to pay any Service Tax on the ‘Residential Complex’ constructed through the sub-contractor and such finding of facts recorded by the Tribunal does not give rise to any substantial question of law – Revenue appeal is dismissed

Rate this blog entry:
Trackback URL for this blog entry.


  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest Monday, 18 November 2019

Like us on facebook

Twitter Feed

ConsultC Please find the latest presentation given to select gathering of real estate developers at Kolkata on West Bengal H… https://t.co/Uizrcczy13
ConsultC Apart from the intricacies of the Forms and constant regulatory changes, GST has a lot of other aspects. We had an… https://t.co/YB1asAgU2s
ConsultC Second Edition of our book released with latest amendments upto September, 2018 https://t.co/eOwUcNZife


304, Super Plaza, Sandesh Press Road, Vastrapur, Ahmedabad
+91 - 079 - 40032950
This email address is being protected from spambots. You need JavaScript enabled to view it.

markerFind on Google Maps

Who we are

We are Ahmedabad based professional consulting firm. We are providing various services to Construction, Real Estate and Project Companies in various areas like Indirect Taxation – Service Tax & Multi state VAT consultancy, ERP implementation, Site & Management audit, Designing Tender & other related contractual documents etc.