service tax on maintenance collected by the builder

Page no : 2

Jeetender Gupta (Advocate) 02 May 2016

There can be no service tax on maintenance security. But if it's advance rental, service tax will be applicable. The society formation charges aspect will have to be examined after considering actual expenses etc. In many states it's negligible or few thousand which could be divided among all members of the society.

Jeetender Gupta (Advocate) 02 May 2016

Gaurav (Chief Engineer) 04 July 2016

In our case, the monthly maintenance charge is below rs 5000/- for each resident

Total annual collection is approx 2 crores.

Maintenance agency is collecting monthly maintenance charge and service tax is being applied.

If RWA starts collecting the monthly charges, is service tax applicable, even though the monthly contribution is below 5000/-. ( we are being told that if annual collection of RWA is more than 10 lakh, service tax is applicable.

service tax on maintenance collected by the builder

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