Service tax on builders and developers

Anil Pandav (CA ASPIRANT ) (31 Points)

29 January 2016  
A Builder has entered into an agreement with the owner of land for development of residential complex on the land. All the houses will be sold by builder only and he will pay a certain percentage of the total receipts to the land owner as a consideration. The Builder is also a contractor so,he himself will construct the houses. Now the Builder is applying for the registration for VAT and service tax so, whether the service of Builder(who is also contractor) will be considered as works contract service or construction service?