ST registration - builder

[felix ka]

dear experts,

what are the criteria to decide whether a builder should take ST registration under 'construction of residential complexes' or 'work contract services?

Scenario: the builder intends to construct a building containing more than 50 apartments. he is registered under 'work contract' as per state VAT rules. the entire construction is sub-contracted. steel, cement etc are provided by the builder. the land belongs to the builder and the client gets his share only after the construction is completed.

under what all circumstances, the department can insist that the builder should take ST registration under 'construcion' services?

AI Summary

Builder Must Register Under Works Contract Services for Building Over 50 Apartments with Materials and Labor A builder inquires about the appropriate Service Tax (ST) registration category for constructing a building with over 50 apartments. The builder is currently registered under 'work contract' per state VAT rules and subcontracts the entire construction, providing materials like steel and cement. The land belongs to the builder, with the client receiving their share post-construction. An expert advises that the ST liability depends on the contract's nature: if it involves both materials and labor, it should be registered under Works Contract Services, which applies to this scenario.