24 September 2016
Our client = Partnership firm
land owners = individual
contract = as per contract our client developing plot and constructed twins bungalow
out of which one bungalow given to land owner free of cost + some considerations for their land which is much below than government values
one bungalow can sell out our client as market value to anybody and all consideration will received our client
land developing agreement was done and construction was started
our client is from Maharashtra
construction is in progress now and completion certificate not get as on now
please give us information regarding MVAT and service tax applicability of 1) bungalow given without consideration land owner 2) if one bungalow sell out before completion and after completion
25 September 2016
1 Works contract service tax on 40% value excluding land and works contract VAT applicable. 2 Service tax on 30% value including land applicable before completion. no service tax after completion.
25 September 2016
Thanks you very much sir
please guide me following
this is first project of my client hence he is not enough knowledge of construction so that he gives contract for developing plot
my client intention is sale out one bungalow and gives contractors for developing plot
in this case he not calculated statutory liabilities
so please explain who is lible to pay tax
CAclubindia
