A view has been expressed that CHS are not covered under the amended provisions. Whether CHS can be said to be a builder as referred to in “Explanation”?
Explanation refers to sum of money being received by the builder from the prospective buyer. A question that will arise, as shown in Model-I above, who is considered to be a builder? The Finance Act does not define the term “builder”. Therefore, we will have to look to its dictionary meaning. It is claimed that construction of building by CHS is self-service by the members of CHS. Therefore, ST is not applicable. However, it should be remembered that CHS is a separate entity quite distinct from its members. It is having statutory recognition being registered under Co-operative Societies Act of the respective State. It may also be noted that in the case of club or association services, ST Department has recognised the CHS as distinct entity from its members. See the Trade Notice below: Letter F. No. V/ST/HQ/Tech/Ref-25/06/1596, dated 7-3-2006, Issued by Commissioner of Service Tax, Mumbai …….. 4. A housing society which is registered under the Co-operative Societies Act is a legal entit
