wct liabilty

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nitin (Querist)
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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

BALU V

BALU V (Expert)
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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.

Kamal Aggarwal

Kamal Aggarwal (Expert)
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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

BALU V

BALU V (Expert)
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08 February 2010 Tnks for updation Mr.Kamal

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