Service tax applicability on construction of building

PRABHANJAN DESHMUKH (Student CA Final ) (24 Points)

27 January 2015  

Hii frnds, I need ur guidance on following matter,

we are 14 frnds and had collectively purchased land for constructing residential complex containing 14 FLATS, one flat of each member for self residence and not for sale and we have appointed builder for constructing said building and he is charging us service tax. 
So whether Builder is liable to collect service tax from us ??? Pl guide by giving ur valuable opinion according to latest provisions of service tax. And also provide notifications, circulars if any regarding same. Thank you.