TaxTMI 
TaxTMI 
A builder who enters in to a development agreement with the buyer of the flat and receives advance payments for the same intends to pay service tax on the amounts received by him under WORKS CONTRACT services. The builder was earlier paying the service tax for the same under “construction of residential complexservices” .Is it obligatory for the builder to register such development contracts undertaken after 01.06.2007 with the local Sales Tax department for discharging their service tax liability under the newly introduced Works Contract services.
Applicability and liability of service tax
04 Feb 2008 
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Works contract service: builders must amend service tax registration to report new contracts under that service.
Builders treating new projects under Works Contract Service must amend their service tax registration to include that service and discharge tax accordingly; receipts from contracts entered into before the introduction of Works Contract Service should continue to be reported under the existing construction service category, whereas contracts entered after that date may be reported under the Works Contract Service once the registrant's certificate is amended. (AI Summary)
Builders treating new projects under Works Contract Service must amend their service tax registration to include that service and discharge tax accordingly; receipts from contracts entered into before the introduction of Works Contract Service should continue to be reported under the existing construction service category, whereas contracts entered after that date may be reported under the Works Contract Service once the registrant's certificate is amended. (AI Summary)