Dear Sir
I have an urgent query regarding the Real Estate Business of one my client, he is selling a Housing Society Projects with two type of segment-one is Freehold Property in which he sells a plots of around 80 Sq. Yard and another is Constructed flats of 2 BHK/3 BHK on a margin Basis-For E.g.-Purchase @ 2000/- Sq. Yard.and sells @ 2500/-Sq. Yard.He paid commission to his various associates in selling the same.He made payment to his vendor on Lump Sum & Instalment Basis.He didn't developed/construct the plots.My Question is only that whether he is liable to pay service tax,if yes-then in which service with abatement,cenvat credit etc.If no-then in which section/rule/notification is defined.Please reply me asap. with brief notes or links.I Shall be very grateful to you for this.
CAclubindia
