Builder Accounts

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Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2010 What can be specific Accounting(IGAAP) and indirect taxation requirement of a Builder?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 August 2010 Builders those making bills statge by stage can be follow AS-7 but incase real esatate developers subject the following guidance issued by the ICAI

https://www.icai.org/resource_file/100751764-1774.pdf

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Querist : Anonymous

Querist : Anonymous (Querist)

25 August 2010 What about indirect taxation requirement?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

25 August 2010 Indirect taxation requirment will be only

1.Service tax
2.Local VAT

Builders having 2 types of nature

1. Contract taken and doing works and billing stage by stage then the VAT will be applicable

2. First Construct the building and sell the to buyer finally,such case based on State VAT act the position will differ

Under service tax 2 categories can be refered
1. Commercial construction

2. Residential construction

Accounting requirement,better maintain the separate accounts different projects for tax planning and compliances purpose

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