Service tax applicability

Under the new service tax valuation rules, reimbursement of expenses shall also be included in the taxable value unless the service is provided under "pure agent".  To avoid litigation, it is advicable to include these expenses and pay service tax.  If you want to avoid this, raise debit note seperately for these expenses. 

 A . owner of 2400 sq.feet of land and sells 1344 sq.feet to a promoter and the promoter is constructing 7 flats and selling at Rs.6000000 per flat .The remaining unsold plot kept by the owner and the promoter agrees to consruct two flats and pay Rs.7 lakh to the owner

 The promoter refuse to pay Service tax 

   what is the consequences and under what sections and who is responsible to pay service tax

   is there any case law  on this subject pls indicate

  thank you,

Stay and travelling expenses of the participants is an integral part of provision of service and as quoted by you it doesnot come under a 'pure agent' sort of activity..thus you need to pay service tax on that amount too..

the reply given by you does not satisfy the requirements.. pls be specific to the points raised by us..