10 August 2011
An individual owning plot has given contract to an engineer (Individual) for constructing “9 blocks apartment“. Engineer has used his own material & labour. Payments were made to engineer in installments. After completion of the apartment the owner is selling the blocks to different buyers. 1)Who is liable for service tax, engineer or the owner? what is the tax liability? 2)Payments are already made to engineer during the year 2009-2010. What is the procedure to be followed & interest & penalty payable as on date. 3)Engineer also constructs houses for personal use of customers. However services provided for constructing houses for personal use are exempt. Is it right?