Service Tax for land owner’s share under “construction of residential complex services”

The demand for service tax on the land owner’s share was raised under the category of “construction of residential complex services”.  As per section 65(105)(zzzz), the said service is defined and includes services which are purely service simplicitor without involving use of materials.

Section 65(91a) of the Finance Act, 1994, defines “residential complex).   It does not apply to the constructions in the nature of composite contracts involving both providing services as well as use of goods and materials.   The services involving composite contracts falls under the Works Contract Services and demand can be raised only under WCS.  The demand under construction of residential complex would not apply to this definition deals with service simplicitor.

Order dated 18.4.2024 of CESTAT, Chennai, Court No.III in Service Tax Appeal No.41407 of 2013 of Ms.Srivari Property Developers Vs. Commissioner of GST and Central Excise with connected matters.