Service Tax and VAT for builder contract given by society

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Manger
26 Points Joined August 2009

We are a welfare society of 250 members registered under AP society act 2001. We are making residential apartment complex and member are getting a flat. We are are awarding a contract to builder to make it for us. I would like to know if builder or society is liable to pay service tax or VAT (any other tax) for this contract ? If yes, what  would be the value (%)of this tax ? I would appreciate if answer points to exact link to notification/law. Does welfare society get any advantage of tax in this case ?

Thank you.

 

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On 09 August 2009 at 21:53 Report
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Chartered Accountant
39039 Points Joined September 2008

The builder would not be liable to pay the service tax since the flat would be built for the personal use of the memebrs of the society.

After the society is in place the regular maintenacne could also be liable under clubs & associations fi the amount per month exceeds Rs. 3000/-

VAT woul dbe applicable to the builder as there is a transfer of goods in the works contract. There are various options under APVAT. A local expert maybe approached.

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On 11 August 2009 at 10:59
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Chartered Accountant
39039 Points Joined September 2008

The builder would not be liable to pay the service tax since the flat would be built for the personal use of the memebrs of the society.

After the society is in place the regular maintenacne could also be liable under clubs & associations fi the amount per month exceeds Rs. 3000/-

VAT woul dbe applicable to the builder as there is a transfer of goods in the works contract. There are various options under APVAT. A local expert maybe approached.

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On 11 August 2009 at 11:00


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