1st July 2010

Service Tax on Construction of Complexes (Residential)

Dear Sir/Madam

The Central Government, vide its Notification No.1/2006-ST dated 1.3.2006, as

amended by Notification No.29/2010-ST dated 22.6.2010, w.e.f. 1.7.2010 and
Notification No.36/2010 dated 28th June, 2010, has brought the “Construction of
complexes” under the taxable service net under the aforesaid Service Tax Act.
Accordingly all Residential, Commercial or Industrial units constructed and
allotted/sold are now subject to Service Tax at appropriate rate. The rate of Service
Tax applicable on various Sub-heads under which payments are to be made for the
Residential Units are given at Annexure-I (attached).

The aforesaid Service Tax is applicable on all payments made by you on or after 1 st
July 2010. The payments received upto 30th June, 2010 are exempt from the
aforesaid Service Tax. It may please be noted that the Service Tax is linked to the
actual date of payment and not linked with the date of Demand.

For all Demand raised upto 30th June, 2010 (if not already paid before 30.6.2010),
you are requested to add the Service Tax amount (as per rates specified in
Annexure-I) and pay along with the Demand Amount. In case of any clarification,
you may please contact the Customer Care Cell.

With Best Regards,

Encl: Annexure-I
 Annexure-I

APPLICABILITY OF SERVICE TAX W.E.F. 1ST JULY 2010

Sl.No. Activity Applicable Tax

01 Construction of Complex Services Service Tax 2.5%

(All Construction Activities excluding
Special Services) (BSP) Education Cess .05%

Secondary & Higher Education .025%

Cess
2.575%

02 Commercial or Industrial Construction Service Tax 2.5%

(BSP)
Education Cess .05%

Secondary & Higher Education .025%

Cess
2.575%

03 Special Charges Service Tax 10%

(PLC, IDC, EDC, Electric Substation
Charges, One time Lease Rent & Education Cess .2%
Additional Basement Storage)
Secondary & Higher Education .1%
Cess
10.3%

04 Club or Association Services Service Tax 10%

Education Cess .2%

Secondary & Higher Education .1%

Cess
10.3%

05 Management, Maintenance or Repair Service Tax 10%

Services
- Maintenance Advance Education Cess .2%
- Maintenance Charges
Secondary & Higher Education .1%
Cess
10.3%

06 Exempt Services – Car Park

07 Other Services - IFMD Nil