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service tax on builder

(Querist) 09 December 2010 This query is : Resolved 
•In case of builder agreed to give flats to the land owner in lieu of the land, is service tax payable by the builder?
R.Ramachandran (Expert) 09 December 2010
How many flats will be constructed by the builder on the plot of land.
Khaleel Ahmed Mohammed (Expert) 09 December 2010
No service tax will be paid by the builder or the owner.
R.Ramachandran (Expert) 09 December 2010
I cannot be so sure as Mr. Khaleel Ahmed, about non-liability to pay service tax without knowing the number of flats, as number of flats being constructed has a bearing on the issue. REST I LEAVE IT TO Mr.GAURANG's wisdom.
yogesh (Expert) 09 December 2010
service tax is meant for professionals organisations etc who give service to the party
R.Ramachandran (Expert) 09 December 2010
Dear Mr. Yogesh, Builder is also a professional let us not forget that.
Gaurang (Querist) 09 December 2010
No. of flats around 120 flats (3 tower).\

i am agreed with the Mr.R.Rammachandran, because land received by the builder is considered as advance received by the builder and land owner denied to pay service tax on the basis of he is a not a service provider.
s.subramanian (Expert) 10 December 2010
Service tax has to be paid.
Gaurang (Querist) 10 December 2010
Can u guide me, who will be the liable for the service tax liability in current case(land owner or builder)and why, or whatever I thought is correct. (because land received by the builder is considered as advance received by the builder and land owner denied to pay service tax on the basis of he is a not a service provider)
R.Ramachandran (Expert) 10 December 2010
It will largely depend upon the terms of the Agreement.
In any case, whoever is providing the construction of complex service is liable to pay the Service Tax.
Gaurang (Querist) 10 December 2010
It’s a development agreement between the builder and land owner, where builder develop the total area and props ante will transfer to the land owner.


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