Service tax & vat upon developers

sir,

I have a client who is an architect engineer involved in construction of residential buildings alongwith shops.

He undertakes different plot of lands at different locality with an agreement to construct  buildings  and sale the flats and shops as per his will and wish by sharing the profit with the land lord.

* he uses his skill as an architect for constructing the building with some labour contractors.

* while construction he uses all the materials for his capital.

* The flats are booked by different people when the construction is in progress, as per specification about the flat is given by the architect.

* The architect is constructing the building as follows:-

1. Building A:    consisting of 14 residential flats and 6 shops

2. Building B:    consisting of 10 residential flats and 4 shops

3. building C:   consisting of 12 residential flats only.

Plz advice whether service tax and /or VAT/works contract is applicable or not.If applicable say the easy process.

Regards

CMA.Md.shakil

 

 

Replies (1)

All taxes would be applicable including the new levy of service tax which has been upheld by HC

Your client must be registered with VAT / Service Tax authorities and you need to elaborate what is the process that you need to understand.

These are all taxes which has to paid, which are indirectly collected from the customers / prospective buyers

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