Service Tax and VAT for builder contract given by society

Queries 1548 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
Featured 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details
Company
Featured 12 March 2026
Customer Relationship Executive

TAXLET

Calicut

B.Com

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 14 March 2026
Article Trainee

N N V Satish&co

Hyderabad

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details