Building contractor

Yes he is liable to pay service tax. Now if these houses are sold or rather entire amount of consideration is received by your client after the issuance of Completion certificate then on 25% of the value of the contract service tax is to be payable. If the above conditions are not meet then service tax is to be paid on 40% of the value of the contract and liability to pay service tax of the service provider is only 50%. Remaining amount of tax is to be borne by the service receiver.