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Require Sanction from "Gram Panchayat" to construct the house
M/s RAGHAVA ESTATES & PROPERTIES LTD Vs COMMISSIONER OF CUSTOMS, CENTRAL EXCISE & SERVICE TAX, GUNTUR
Service Tax - The activity which is proposed to be carried out is to build a house for an individual that is only for a single house for the customer – the applicant-company is also required obtain the necessary sanctions from the ‘Gram Panchayat’ for being able to construct the house - ‘bundled service’ agreement - eligibility of exemption from Service Tax
HELD - if there is an independent agreement only for the purposes of obtaining the necessary sanctions from the local self government including the ‘Gram Panchayat’ then it would undoubtedly amount to an independent service.
- However, in this case it is a ‘bundled service’ of obtaining the necessary sanctions and then building the individual house, therefore there will be no Service Tax attracted – since there is a common agreement of obtaining the sanction and then build an individual house, it is covered under the exemption notification – in favour of applicant