TaxTMI 
TaxTMI 
2009 (7) TMI 135
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....ged in the construction of residential complex. In case of co-operative societies, the complex is constructed for their own members or prospective members. However, in case of one appellant M/s. Sujal Developers, they are authorized by Society to construct super structure on the land owned by the Society with a stipulation that the same shall be transferred to the members of the Society and not otherwise. As far as the appellant Societies are concerned, they construct residential flats/complex on their own and thereafter provide the same for use and occupation by their members. All the appellants paid service tax initially. However, subsequently, they formed an opinion that they were not liable to service tax on the services rendered by the....
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.... owner of properties and providing it to the appellants, is not acceptable. He also reiterates the observations of the lower authority. 5. I have considered the submissions made by both sides. In this case, there is no dispute that co-operative, societies have not taken a service of the contractor for constructing residential complex but have chosen to construct complex on their own. Where they have taken a service of the contractor, Society has handed over the land to the contractor and the contractor provides the service to the individual who purchases the residence. In all these cases, the transaction is between the members of the Society and either the Society or developer. According to the circular issued by Board on 1-8-06 cited by t....
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....the ownership of the property gets transferred to the ultimate owner. Therefore, any service provided by such seller in connection with the construction of residential complex till the execution of such sale deed would be in the nature of 'self-service' and consequently would not attract service tax. Further, if the ultimate owner enters into a contract for construction of a residential complex with a promoter/builder/developer, who himself provides service of design, planning and construction; and after such construction the ultimate owner receives such property for his personal use, then such activity would not be subjected to service tax, because this case would fall under the exclusion provided in the definition of 'resident....