TaxTMI 
TaxTMI 
I am of the opininon that a BUILDER is not liable for payment of service tax under "construction of Residential complexes" if he constructs Apartments in his own land with his own labour and sells it after total completion of it to a prospective buyer. In case he registers the Apartment under semi finished stage to some buyer and enters into a development agreement with the buyer and completes the finishing worK on some remuneration , is the builder liable for service Tax. If so on what value he has to pay the tax?
Liability of builder to pay service tax -
27 Sep 2007 
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Construction v works contract: finishing services under a development agreement attract service tax on construction cost.
Where a builder transfers completed apartments constructed on his own land, such sales do not attract service tax under construction-of-residential-complexes; however, if the builder transfers a semi-finished unit and performs finishing works for remuneration under a development agreement, those finishing works constitute a taxable works contract and the taxable value is the construction cost of the services performed, the immovable property having already borne stamp duty. (AI Summary)
Where a builder transfers completed apartments constructed on his own land, such sales do not attract service tax under construction-of-residential-complexes; however, if the builder transfers a semi-finished unit and performs finishing works for remuneration under a development agreement, those finishing works constitute a taxable works contract and the taxable value is the construction cost of the services performed, the immovable property having already borne stamp duty. (AI Summary)