Builders and property promoters in Coimbatore have appealed to the Commissioner of Central Excise, Customs and Service Tax to address the issues they faced in payment of Service Tax, taking into consideration the difficulties faced by the sector in the last one year.

Representatives of the local chapters of Builders’ Association of India and Confederation of Real Estate Developers’ Associations of India and the Coimbatore Builders and Contractors Association submitted a memorandum here on Monday to the Commissioner.

An official of the Commissionerate of Central Excise, Customs and Service Tax, Coimbatore, told The Hindu that the Service Tax collection target this year is Rs. 720 crore, which is 37 per cent more than last year. Construction is one of the major sectors for Service Tax.

The 12 per cent tax is levied on all those who are in construction activity, be it the builder or the subcontractor.

The representatives have said that construction of star hotels in the city was completed one or two years ago and there was no such construction in the last one year. Investments in the industrial sector have also dropped in the last couple of years.

Educational institutions have created huge infrastructure during the last 10 years. In the case of residential construction, sale of apartment units and bookings have declined sharply for several reasons.

Several builders, contractors, and property promoters are receiving notices and demands for payment of Service Tax. Notices issued to members for projects or construction activities that have been completed in the past should be dropped.

When an audit is completed for an assessment year, the assessment proceedings should not be reaudited unless new evidence is established.

Notices should not be served on those who have got exemption under certain notifications. Notices served on subcontractors for services done in the last five years should be reviewed, they said.

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