One of My Client under Proprietorship concern is engaged in construction of independent Tenaments/Row Houses as Developer.The total Number of Such Houses are 8(i.e. less than 12 Residential Houses). the Constructed cost comes to Approx. Rs 8 Lacs.  There is a development Agreement between  Developer & each member through notarised Documents. The Land is acquired by each member seperatelty by way of sale deed between landowner & Member himself.

My query is whether the said activities are subect to Service Tax or Vat Or Both. If Yes then under which head & what tax rate willbe as far as my client is concerned as Developer.

Regards.

CA Sanjay Baheti

In this case only to VAT as it is not a complex and also it is transfer of immovable property for persoanl use.

VAT on compistion/ reguslar scheme as local VAT law provides.