Service tax applicability on construction of building

Registered builder under service tax authorities only is eligible to colllect service tax

The whole activity consist of two activity (i) the unincorporate body who undertake to build for flats for member by hiring contractor which is defined as Construction of Residential Complex and (ii) contractor who actually construct building this is construction service.

Your attention is drawn to Explanation 2 to definition of "Service" given at Section 65B(44) of the Finance Act'1994 as under.

Explanation 2.–– For the purposes of this Chapter,— (a) an unincorporated association or a body of persons, as the case may be, and a member thereof shall be treated as distinct persons;

Hence, it can be termed as your group and builder both providing taxable service and the same is not self-service.