Service tax applicability - Construction of building

[Guest]

1.IF I AS THE OWNER OF THE LAND & COLLABRATES WITH A CONCERN FOR CONSTRUCTION OF THE BUILDING ON THE SAME LAND . IS SERVICE TAX IS APPLICABLE OR NOT

[Madhukar N Hiregange]

Since you do not provide any servcies you have no liability. Howeevr you may ensure that you only get inot a sale of flat/ property agreement and avoid construction agreements since you do nto provide any construction.

[Madhukar N Hiregange]

Since you provide no servcie there would be no liability on you. However you should ensure that you do not have a construction agreement with the prospective buyers to avoid avodiable issues.

AI Summary

Service tax applicability: no liability where landowner does not provide construction services; prefer sale agreements over construction contracts. When a landowner collaborates with a builder but does not perform or supply construction services, no service tax liability arises for the landowner; the landowner should avoid construction agreements with buyers and use sale of flat/property agreements to preserve its status as vendor rather than service provider.