https://www.taxtmi.com/article/detailed?id=142 Service tax on construction and sale of residential flats depends on whether a construction of complex service is provided by one person to another. If a developer engages a contractor, the contractor's gross construction charges fall within construction services and attract service tax. If construction is carried out by the developer with its own labour and no service-provider/service-recipient relationship exists, the activity is generally not taxable and receipts are treated as sale consideration. Authorities and rulings differ where factual arrangements suggest a service relationship or where advances are characterised as payments for services. en-us Sat, 23 Aug 2008 00:00:00 +0530 Sat, 07 Mar 2009 16:32:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=142 Service tax on construction and sale of residential flats depends on whether a construction of complex service is provided by one person to another. If a developer engages a contractor, the contractor's gross construction charges fall within construction services and attract service tax. If construction is carried out by the developer with its own labour and no service-provider/service-recipient relationship exists, the activity is generally not taxable and receipts are treated as sale consideration. Authorities and rulings differ where factual arrangements suggest a service relationship or where advances are characterised as payments for services. Articles Service Tax Sat, 23 Aug 2008 00:00:00 +0530 https://www.taxtmi.com/article/detailed?id=142