Income Tax Matter

I am working as an accountant with Partner Ship firm, carrying on Builders & developers Business.

 

We have taken one project on Joint Development Agreement basis duly Registered.

 

I want to ask for the following Points:

 

a.                   As per Joint Development Agreement, Land Owner so Called  as  1st Promotor and  Developer  so called as 2nd Promotor.

 

 

b.                  In co relation to above point a, it was agreed to give 44% of the total Sale transaction made by Developer to the 1st promoter i.e. to Land Owner.

 

c.                   I want to check the Tax aspect for the same, i.e. whether the above deal will affect any T D S to be borne by Developer.

 

 

d.                  Also please guide what will be the Service Tax impact for the said deal  on 2nd Promotor .

Replies (1)

unless subsequent cash transaction or book entry is made in books, tds provisions does not enforced. 

unless the total cost exceeds 20L no service tax, thereafter its subject to service tax on developers.

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