Construction of residential complex

This query is : Resolved

RAVI SONI (Querist)
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27 March 2012 1. A developer gives contract for construction of building to a contractor as the contractor is unregistered he is not charging any Service Tax from the developer. In this regard I want to know whether there is any liability of the developer, who has granted the contract to the contractor.

2. If developer has any liability then currently he is registered as service provider under the head " Construction of Residential Complex " so what type of formalities is supposed to be complied by the developer if he will be liable to pay Service Tax on behalf of the contractor, since the contractor is unregistered.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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29 March 2012 Contractor is liable for service tax and if he is not charging the same to the developer then the service tax cab be collected from the contractor with interest and penalty.