hey hi guys I have some querry of service tax in case of real estate developers.
As in AY 10-11 new notification was inserted and service tax is also levied on deemed construction.
Now in this case
1) Whos is liable to pay service tax ? is the builder is liable to pay from his pocket or he has to recover from the buyer of the property.
2) If service tax is recoverd from the buyer no can he availed the input credit of that.
Suppose Mr. A purchase Business Premises from builder Mr. B and B has recoverd service tax from A
now can Mr. A take the credit of servcie tax as input credit.