23 December 2010
dear all, kindly clarify the validity of service tax in the following issue.
A Company engaged in development and sale of residential flats. It entered into agreement for construction of flats with the contractors. The said flats are ultimately sold to the customers.
24 December 2010
The contractor is required to pay service tax on construction services. It will be an input service for the developer, who will pay service tax on construction of residential complex service.