Leviability of Service Tax on land developers

[Meenakshi Kapoor]

Is service tax leviable on land developers who are engaged in selling plots after land levelling, road construction etc.

AI Summary

Selling Developed Plots Not Subject to Service Tax; Developers Not Providing Taxable Services to Buyers. A query was raised about the applicability of service tax on land developers involved in selling plots after activities like land leveling and road construction. Two responses clarified that selling plots does not attract service tax. One response emphasized that the developer is not providing a service to buyers, as they are merely selling developed plots. Another response noted that if a developer hires an external party for site formation, there might be a question of receiving taxable services, but generally, the developer is not liable for service tax under site formation or any other category.