banner_ad

Service Tax and VAT for builder contract given by society

Service Tax (Legacy) 1574 views 2 replies

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.

 

Replies (2)

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.

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.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
18 May 2026
MIS Executive

Primarc Pecan Retail Limited

Mumbai

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details
Company
19 May 2026
Article, CA & Paid Assistant Positions

Aggarwal Sarawagi and Co

New Delhi

CA

View Details
Company
ARTICLESHIP 04 June 2026
Article

Rakhecha & Co.

New Delhi

CA Inter

View Details
Company
01 June 2026
Audit, Taxation & Compliance Executive

R P S K & Associates

Nashik

CA Inter

View Details
Company
ARTICLESHIP 15 May 2026
Audit Assistant / Article Trainee / Intern

SSGS and Associates

Chennai

CA Inter

View Details