Whether the activity of booking the residential units to be undertaken by the applicant is a taxable service liable to service tax under the provisions of section 65 (105) of the Finance Act, 1994?
It seems that the question as framed lacks in clarity. The question, if literally read, is confined to the first step of ‘booking’ the residential unit but not the series of activities that follow the booking and entering into the agreement. However, it is clear from what is stated in the application and also the arguments of the learned authorized representative that the applicant wants a ruling on the broader question whether the service tax liability is fastened on it by reason of undertaking the construction on an identified plot and handing over the constructed unit to the customer on receipt of the entire consideration. While discussing the question no.2 and 3, we have recorded the conclusion that the proposed activities 1 and 2 undertaken in accordance with the terms of the draft agreement attracts service tax liability under section 65 (105) (zzzh) of the Finance Act, 1994. Therefore, it is unnecessary to give a separate ruling on this question.
IN THE AUTHORITY FOR ADVANCE RULINGS
CENTRAL EXCISE, CUSTOMS & SERVICE TAX
NEW DELHI
Ruling No. AAR/03(ST)/2008
In
Application No.AAR/05(ST)/2007
