Liability of Service Tax on the Land lord for the Construction of residential complex

[THYAGARAJAN KALYANASUNDARAM]

Dear Expert,

One of my client has planning to enter agreement with the builder for constructing the resident which will be consist of more than one kitchen. And the land lord before entering into agreement with the builder, he is planning to the settle the entire property to his wife and his children throgh the execution of settlement deed and register with the respective registering authority. subsequently, each and every family member seperately enter the agrreement with the same builder for contract the building.

1. My question is there any violation of service tax.

2. If he do so, any service tax liability will come in the future. The building is going to be consist of more than one kitchen. However, the family members are individualy enter the agreement with the builder for each flat.

can any one suggest the suitable answer with cited case laws.

AI Summary

Family's Property Transfer and Construction Plan Exempt from Service Tax under Notification No. 25/12-ST, Entry 14(b) A client plans to transfer property to his wife and children via a settlement deed before entering into agreements with a builder for constructing a residential complex with multiple kitchens. Each family member will individually contract with the builder for their respective units. The query seeks clarification on potential service tax liabilities. Responses indicate that constructing a single residential unit is exempt from service tax under Notification No. 25/12-ST, dated 20.6.12, as amended, specifically entry No. 14(b). Both responders agree that the construction of single residential properties falls under this exemption.