Liability of service tax - real estate developer

[Guest]

Whether Real estate developer /promoter are liable to service tax under WORKS CONTRACT or any other head taking into consideration the judgement set by Raheja case and recent Magus Constraction in Guahati High Court

[Surender Gupta]

Subject to the Apex Courts final verdict, I am of the opinion that real estate developers should not be liable to service tax. Despite the judgment of the Apex Court in the matter of Raheja Developers, there are strong grounds in favor of real estate developers.

AI Summary

Service tax liability for real estate developers questioned; advisory view favors non-liability pending final Apex Court decision. Whether service tax attaches to real estate developers under the works contract or other service heads is questioned with reference to Raheja and Magus Construction. The advisory opinion in the document states that, subject to final apex court determination, real estate developers should not be liable to service tax, noting that despite the Raheja precedent there exist substantial grounds supporting non-liability.