A developer of a property has entered into a development agreement with a owner of land wherein the developer would pay a lumpsum consideration for the land and will develop and sell the flats (more than 12 units etc condiitons fulfilled). Is the developer liable to service tax. Can it be held that the developer is providing the services to owner of the land. If yes on what amount service tax would be payable.
Further if the developer enters into agreement with the prospective buyers before construction of the flat. Is the Supreme Court judgement in the case of K Raheja (rendered in the context sales tax wherein it was held it was works contract) applicable and if so whether it can be held that the builder(developer) has provided construction services to the ultimate customer
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