Validity of Service Tax on Sale of Flats

This query is : Resolved 

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.


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