wct liabilty
This query is : Open
08 February 2010
my client is a builder he builds residential floors in 2 scenarios
1.he gets into a contract with party and takes one floor and makes rest of house for him
2. he takes own plot and sells floor wise
i want to know service tax and vat applicability i want to further add
suppose he incurrs cost of 50 lakh in building the whole structure and sells his floor for 60 lakh and two sixty lakh floors given to the client free of cost rate of vat is 12.5% and service tax is 10.3% on which amt vat and service tax is levied
1.he gets into a contract with party and takes one floor and makes rest of house for him
2. he takes own plot and sells floor wise
i want to know service tax and vat applicability i want to further add
suppose he incurrs cost of 50 lakh in building the whole structure and sells his floor for 60 lakh and two sixty lakh floors given to the client free of cost rate of vat is 12.5% and service tax is 10.3% on which amt vat and service tax is levied
08 February 2010
In the first scenario he is liable for the builtup area given to the land lord. If he sells the remaining portion he is liable on the remaining portion also.
In the second scenario if the floor is sold and stamp duty is paid for the whole value means there is no service tax. Otherwise ST is applicable.
In the second scenario if the floor is sold and stamp duty is paid for the whole value means there is no service tax. Otherwise ST is applicable.
Kamal Aggarwal
(Expert)
08 February 2010
The situation is similar in case of VAT as well. VAT would be levied in the first case and not applicable in the second case
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