Service tax on construction and rent

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 Mr. A – Land owner.

Mr. B – Has taken land on rent from Mr. A and Doing construction on the land by engaging Mr. X (Contractor) for construction labour work.

Mr. B has entered in a agreement for constructed Property with M/s. C and they will run a eductional institute in the constructed property.

Whether service tax will be applicable between Mr. B and Mr. X for construction work.

Whether service tax will be applicable on the rent received by Mr. B from M/s. C, who will run a educational institute on the said property.

Querist : Anonymous

Querist : Anonymous (Querist)

31 December 2010 very technical quary. since in construction contractor case service tax is applicable when property is constructed for resale purpose.

secondly rent received from educational institute is out of service tax perview.