Which database type to use I want to implement database for following application:-

User creates task and assigns to other user who can furthur split it into subtasks and assign it to other users.creaking a tree like structure.

Should i use graph database or what?
You could use a graph database, or a plain old relational one:

/* set parent_id for child tasks */

create table task (
  id serial primary key,
  parent_id integer null references task(id),
  subject text not null,
  body text null,
  due_at date null
);

create table task_role_type(
  id smallint primary key,
  name text not null
);

insert into task_role_type values 
(1, 'Created By'),
(2, 'Assigned To'),
(3, 'Completed By');

create table task_role (
  task_id integer not null references task(id),
  party_id integer not null references party(id),
  role_id smallint not null references task_role_type(id),
  from_date timestamp not null default current_timestamp,
  to_date timestamp null,
  primary key (task_id, party_id, role_id, from_date)
);


Create a task:

insert into task (subject, due_at) values ('do stuff', '2013-02-18');

insert into task_role (task_id, party_id, role_id) values (1,1,1);


Assign a task:

insert into task_role (task_id, party_id, role_id) values (1, 2, 2);


Split up a task:

insert into task (parent_id, subject) values (1, 'do stuff B');
insert into task_role (task_id, party_id, role_id) values (2, 1, 1);


Complete a task:

insert into task_role (task_id, party_id, role_id) values (1, 2, 3);


I would recommend PostgreSQL, as it can handle hierarchical data better than MySQL